Regulatory Alerts2024-11-26 | Regulatory Notice 24-15Added · Updated
FINRA Amends Arbitration Codes to Provide Customers Copies of Expungement Hearing Records
FINRA amended Rule 13606(c) of the Code of Arbitration Procedure for Industry Disputes to require the Director to provide customers with a copy of the official record and any transcription of an expungement hearing. This obligation applies to customers who attend and participate in the hearing or who submit their position on the expungement request in writing. The amendments also update Rules 12606 and 13606 to specify that digital recordings serve as the official record of proceedings.
Attachment A New language is underlined; deletions are in brackets.
- CODE OF ARBITRATION PROCEDURE FOR CUSTOMER DISPUTES
- Record of Proceedings (a) [Tape, ]Digital[,] or Other Recording (1) Except as provided in paragraph (b) of this Rule, the Director will make a [tape, ]digital[,] or other recording of every hearing. Executive sessions (i.e., discussions among arbitrators outside the presence of the parties and their representatives, witnesses, and stenographers) held by the panel will not be recorded. The Director will provide a copy of the recording to any party upon request. (2) through (3) No Change. (b) Stenographic Record (1) Any party may make a stenographic record of the hearing. Even if a stenographic record is made, the [tape, ]digital[,] or other recording will be the official record of the proceeding, unless the panel determines otherwise. If the panel determines in advance that the stenographic record will be the official record, the Director will not record the hearing. (2) No Change.
- CODE OF ARBITRATION PROCEDURE FOR INDUSTRY DISPUTES
- Record of Proceedings (a) [Tape, ]Digital[,] or Other Recording (1) Except as provided in paragraph (b) of this Rule, the Director will make a [tape, ]digital[,] or other recording of every hearing. Executive sessions (i.e., discussions among arbitrators outside the presence of the parties, their representatives, witnesses, and stenographers) held by the panel will not be recorded. The Director will provide a copy of the recording to any party upon request. (2) through (3) No Change. (b) Stenographic Record (1) Any party may make a stenographic record of the hearing. Even if a stenographic record is made, the [tape, ]digital[,] or other recording will be the official record of the proceeding, unless the panel determines otherwise. If the panel determines in advance that the stenographic record will be the official record, the Director will not record the hearing. (2) No Change. (c) Copies of Recordings and Transcriptions of Expungement Hearings The Director will provide a copy of the official record of an expungement hearing held pursuant to Rule 13805, and any transcription if the recording is transcribed, to any customers, upon request, who attend and participate in the expungement hearing, or who provide their position on the expungement request in writing.
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