On Dec. 17, 2024, FINRA publishedRegulatory Notice 24-16 regarding adoption of amended Code of arbitration procedure for customer disputes, effective Mar. 3, 2025.
On May 13, FINRA proposed document production list election option.
FINRA issued a proposed rule change to amend FINRA Rule 12800 (simplified arbitration) to clarify and amend the applicability of the document production lists.
Proposed Amendment
Affects applicability of document production lists in simplified customer arbitrations.
Gives option to elect whether document production lists should apply to all parties.
Option elected by customers in paper cases and special proceedings at the time they initiate an arbitration or, if they are a respondent, no later than the answer due date.
Under change, FINRA Rule 12506 would not apply in paper cases/special proceedings.
Unless the customer requests that document production lists apply to all parties.
If customer elects to apply document production lists FINRA Rule 12506 would apply.
The proposal notice includes a red-lined version of the amendments starting on pg. 42.
Consultation
Comments must be submitted in 21 days from pending publication in federal register.
May 21, 2024 SECProposal
On May 21, 2024, SEC published notice of FINRA proposal for 21-day comment period.
May 28, 2024 SEC Fed Reg Proposal
On May 28, 2024, SEC published proposal in federal register, comment Jun. 18, 2024.
Jul. 2024 FINRA Extension
On Jul. 8, 2024, FINRA extended the time for the SEC to take action to Aug. 26, 2024.
Aug. 7 2024 FINRA Response to Comments, Amendment
On Aug. 7, 2024, FINRA responded to comments and filed amendment to rule filing.
Received comment suggesting to revise certain provisions to mirror language in proposed Rule 12800(g)(1)(A) such that both provisions begin with same references.
Believes that this suggested change would provide additional clarity to the proposed rule text and, therefore, has determined to amend proposed Rule 12800(g)(1)(B).
Both provisions now start with the document production lists, described in Rule 12506.
Provided comments received between May 24 to Aug. 7 by the Commission.
Aug. 21, 2024 SEC Partial Amendment 1
On Aug. 21, 2024, SEC issued partial amendment 1 filing and instituted proceedings.
Comments due 21 days from publication in federal register; rebuttals due 35 days.
Aug. 27, 2024 SEC Fed Reg Amendment 1
On Aug. 27, 2024, SEC published amendment 1 and proceedings in federal register.
Comments are due on Sep. 17, 2024 and rebuttals must be filed by Oct. 1, 2024.
Oct. 2024 SEC Approval
On Oct. 28, 2024, SEC issued order approving proposed rule change, as modified by partial amendment no. 1, to amend FINRA Rule 12800 (simplified arbitration).
Nov. 2024 SEC Fed Reg Approval
On Nov. 1, 2024, SEC published order approving FINRA rule in the federal register.
In Nov. 2024, MIAX reported SEC approval of FINRA proposed rule, see #232721.
Dec. 2024 FINRA Regulatory Notice
On Dec. 17, 2024, FINRA publishedRegulatory Notice 24-16 regarding adoption of amended Code of arbitration procedure for customer disputes, effective Mar. 3, 2025.
