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FINRA opens broad review of arbitration process

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Photo: Getty Images/Mike Ehrmann

The move signals an impending reboot of an often-criticized system.

FINRA requested public comments on possible changes to its arbitration forum (Regulatory Notice 26-06): the self-regulatory organization’s critical dispute resolution system whose awards are doled out by independent arbitrators chosen by the parties.

FINRA’s arbitration forum is designed as an alternative to litigation and results in awards that are almost