Amends FINRA Rule 12208 of Code of Arbitration Procedure for Customer Disputes and FINRA Rule 13208 of Code of Arbitration Procedure for Industry Disputes.
Also amends FINRA Rule 14106(b) through (d) of the Code of Mediation Procedure.
Revises and restates the qualifications for representatives in arbitrations and mediations in the forum administered by FINRA dispute resolution services (DRS).
Disallows compensated non-attorneys from representing parties in the DRS forum.
Codifies that a student enrolled in a law school participating in a law school clinical and practicing under supervision of an attorney may represent investors in the DRS forum.
Proposed rule changes also clarify the circumstances in which any person, including attorneys, would be prohibited from representing parties in the DRS forum.
Consultation
Comments must be submitted in 21 days from pending publication in federal register.
Oct. 6, 2023 SEC Filing Notice
On Oct. 6, 2023, SEC issued proposal notice; comments 21 days from fed register.
Oct. 13, 2023 SEC Fed Reg Filing Notice
On Oct. 13, 2023, SEC published proposal in federal register; comments due Nov. 3.
Jan. 11, 2024 SEC Approval
On Jan. 11, 2024, SEC issued order approving proposed rule change re FINRA codes.
Jan. 18, 2024 Fed Reg Approval
On Jan. 18, 2024, SEC published approval of FINRA proposal in the federal register.
Jan. 19, 2024 SEC Stay of Approval
On Jan. 19, 2024, SEC issued letter notifying that the Jan. 11, 2024 order approving the FINRA proposed rule change is stayed until the Commission orders otherwise.
On Apr. 8, 2024, SEC Comm. Peirce reported SEC opened 30-day comment period.
Posed questions, requested comments in support/opposition of FINRA rule preventing non-lawyers from getting compensated to represent investors in arbitration proceeding
Invited example of low-, high-quality representation by paid no-lawyer representatives
Issued order approving proposed rule change to remain stayed pending another order.
Before May 8, 2024, any party or person may file in support or opposition to order.
Apr. 11, 2024 SEC Order
On Apr. 11, 2024, SEC issued order approving stay of rule change in federal register.
