The industry regulator announced April 20 that it is postponing all in-person arbitration and mediation proceedings scheduled through July 3, 2020 because of the COVID-19 pandemic.
For those who have an in-person hearing or mediation session scheduled through this date, FINRA staff will contact those persons to reschedule or discuss remote scheduling options, according to the announcement. FINRA emphasizes that postponing a hearing will not affect other case deadlines. As such, all case deadlines will continue to apply and must be timely met unless the parties jointly agree otherwise, the organization notes.
Postponement Fees
FINRA will also waive postponement fees when parties stipulate to adjourn in-person hearing dates scheduled from July 6 through Sept. 4, 2020. To avoid postponement fees, parties must provide written notice of the stipulation to adjourn more than 20 days prior to the first scheduled hearing date. Moreover, parties stipulating to adjourn in-person hearing dates should also consider stipulating to changing other case deadlines.
The announcement further notes that FINRA Dispute Resolution offers virtual hearing services—via Zoom and teleconference—to parties in all cases by joint agreement or by panel order. It adds that these services provide secure, user-friendly options for conducting video and telephonic hearings and sharing documents remotely. Moreover, staff is available to schedule virtual hearings and provide technical support. FINRA notes that parties interested in this option should contact their Case Administrator for details.
The organization also advises that, as part of its COVID-19 response, it is focusing on monitoring for fraud, illicit schemes and other manipulative activities seeking to take advantage of the conditions created by COVID-19 and ongoing market volatility. “We ask that member firms remain vigilant, and promptly make us aware of any suspect activity they may identify.”
FINRA also notes that it will continue to provide guidance and targeted relief to member firms in meeting their regulatory obligations, but firms that are unable to respond to requests for information or meet other regulatory deadlines are encouraged to contact the relevant FINRA personnel.
