FINRA has prolonged its review of who should be allowed to act as public arbitrators in its cases, with no decision possible at least until the fall. As the regulator holds off on this definition, its current arbitration process continues to yield a number of disputes over language between opposing brokers and firms.

The SEC, which must approve the rule proposal by FINRA, now has until October 1 to consider prohibiting anyone who has worked in the securities industry from serving as a public arbitrator. The rule would also bar any professional who has spent 20% or more of their time serving either industry or customer clients from acting as a public arbitrator.

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