February 7, 2013
I am an attorney who represents investors in securities arbitration and litigation matters. I submit this comment in favor of the proposed rule change.
Individuals employed by mutual funds or hedge funds should be removed from the "public" pool of arbitrators. "Public" arbitrators should not have any affiliation with the securities industry. Additionally, employees of mutual funds or hedge funds should be subject at least the same 5 year waiting period, after their resignation from employment, as registered representatives. In my opinion, a 5 year waiting period is not sufficient.
If you want investors to believe in FINRA as a fair and impartial arbitration forum, you must not allow employees of the securities industry to be designated as "public" arbitrators. It is misleading to do so.
Thank you for your consideration of my comment.
Respectfully,
Thomas C. Costello