Registered: Sep 2011
08-05-12 02:55 AM
FINRA's removal of the three arbitrators between mid-2011 and early 2012 raised questions among lawyers and others about whether the influence of a major Wall Street firm was powerful enough to prevent arbitrators who make decisions adverse to the industry from continuing to serve.
"FINRA simply does not remove arbitrators from the roster based on their (rulings) and never has," Linda Fienberg, the head of FINRA's dispute resolution wrote in a letter on Wednesday to a national organization of lawyers who represent investors in securities arbitration cases. It is likely the first time FINRA has ever reinstated arbitrators.