FINRA Arbitration Seeks to Change Numbers of Arbitrators in Certain Cases

FINRA recently filed a proposed rule change with the SEC.  In SR-2008-047, FINRA seeks the SEC's approval to modify Rules 12401 and 13401 that relate to the number of arbitrators that hear each case.  Under the proposal, for cases seeking damages of over $25,000 but less than $100,000 (exclusive of interest and expenses) the case would be heard by one public arbitrator, instead of three, unless all of the parties agree in writing to three arbitrators. 

FINRA's rationale for this change is to make the process cheaper and more efficient (speedier), it seems.  They've pitched this as a way to save money for the parties (by paying one arbitrator instead of three), by making it easier to schedule pre-hearing conferences and hearings (scheduling one instead of three etc.).  The SEC is currently accepting comments on the proposal.