'Bombshell’ Walls Fargo lawsuit pushed FINRA to change arbitration process

The entire point of an arbitration process is to avoid costly court proceedings by settling disagreements in front of an impartial person or panel. That’s certainly not what’s happened with a Wells Fargo case in which a judge spoke of secret meetings, manipulation and perjured testimony. It’s a nasty mess that called into question the fairness of FINRA procedures and is on yet another appeal.

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But some good may come from it. Tobias Salinger reports that despite FINRA’s belief that it properly followed its own rules, the regulator recognized some places in which it could make things a little more transparent. It’s has or is in the process of tweaking three rules to that end.

For more: FINRA changes arbitrator selection as Wells Fargo case enters possible state Supreme Court appeal

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