What is a Non-Public FINRA Arbitrator?

             A non-public FINRA arbitrator is thought of as an 'industry' person.  Investors are often concerned to have such arbitrators on their panel over the fear that industry arbitrators would be inclined to favor the industry, not the investor.  Others argue that these industry insiders would be willing, if not eager, to punish individuals who tarnish the industry’s reputation.  In any event, investors now have the right to choose whether there will be any non-public arbitrators on their panel.

                FINRA specifically defines who qualifies as a non-public arbitrator.  For instance, an arbitrator will be considered to be non-public if they presently, or within the past five years, were associated with a broker or a dealer, were registered under the Commodity Exchange Act, retired from - or spent a substantial portion of their career engaging in - business activities related to brokers, dealers, or members of a commodities exchange.  A full list of what experience will render someone a non-public arbitrator can be found in the code of arbitration procedure

See FINRA Code of Arbitration Procedure for Customer Disputes 12400(p).