]]> Home | Message Board Home Search Arbitration Investors Brokers Finance Law Compliance Archives NASD Injunctive Rule Proposal Extended
Stalled at the SEC for years, a determination may be near
Stalled at the Commission for a couple of years, proposed amendments to Rule 10335 appear to be nearing some determination. One can never tell, of course, but the extension of time to which NASD Dispute Resolution agrees in this new filing is only for a very short period — until June 18, 2001.
Moreover, NASD makes changes to the Rule proposal, which is itself an overhaul of the original pilot for expedited arbitration, that are primarily SEC staff suggestions and merely appear to tweak the proposed amendments. Attention focuses on the temporary injunctive process, which the new Rule would leave to the courts, and tries to marry it more seamlessly with the arbitral process for damages and permanent injunctive relief. NASD cuts back on the requirement that lawyers with injunctive relief experience must constitute a majority of the arbitrator nomination list, evidently in response to fears by some commenters that such an expertise requirement would produce firm-biased panelists. The Director may now choose a Chairperson who is not such an individual and the number of expert nominees will be three of seven (industry panel) or four of nine (mixed panel). The Panel is given more power to allocate fees and expenses and its power to issue permanent injunctive relief and set new hearing for damages or other relief is clarified.
The particulars of the new proposal are detailed in a letter from the NASD to the SEC staff, dated May 17, 2001 and can be viewed at either the NASD Regulation or the NASD Dispute Resolution WebSites. (SAA Ref. No. 2001-23-01)
Copyright 2000-2002 Securities Arbitration Commentator, Inc. P.O. Box 112, Maplewood, NJ 07040; t: 973-761-5880 f: 973-761-1504. Materials denoted with a SAC Reference No. (e.g. SAC Ref. No. 99-01-001) are on hand at SAC and may be obtained by calling the Securities Arbitration Commentator, or by email to email@example.com. The Securities Arbitration Commentator is the leading publication for securities arbitration news and information, and maintains the most complete database of arbitration awards availalble anywhere. For more information regarding their services, visit their website at www.sacarbitration.com
Nothing herein is intended as legal or financial advice. The law is different in different jurisdictions, and the facts of a particular matter can change the application of the law. Please consult an attorney or your financial advisor before acting upon the information contained in this article.
Return to The Securities Law Home Page
Visit Beam & Astarita, LLC, securities arbitration, regulation and litigation attorneys