November 4, 2015
I join in the letter from the Public Investors Arbitration Bar Association (PIABA) and the Comment of Jill Gross, Professor of Law, Pace Law School, strongly opposing this Rule Proposal to merge FINRA Dispute Resolution, Inc. into FINRA Regulation, Inc.
I have practiced in the field of securities arbitration since the late 1980s, representing both customers and members/associated persons.
The proposed merger is contrary to the stated purpose of maintaining a neutral and independent dispute resolution program, and would do substantial damage to the credibility of the FINRA arbitration program. In a field where virtually all public customers are forced into an industry-run arbitration forum because of form arbitration agreements, merging the enforcement and dispute resolution functions would create even more public perception that the forum serves the purposes of the securities industry.
I urge the SEC to reject this Rule Proposal, and to focus on ways of making the FINRA dispute resolution process more fair to all parties involved.