In response to the evolving coronavirus disease (COVID-19), FINRA has decided to administratively postpone all in-person arbitration and mediation proceedings scheduled through April 2, 2021, unless the parties stipulate to proceed telephonically or by Zoom or the panel orders that the hearings will take place telephonically or by Zoom.
The organization had postponed all in-person proceeding through 2020 and decided to extend the moratorium further, it tweeted Tuesday.
Note that if all parties and arbitrators agree to proceed in-person based on their own assessment of public health conditions, the case may proceed provided that the in-person hearing participants comply with all applicable state and local orders related to the COVID-19 pandemic.
CDC guidance
Currently, none of the 69 hearing locations demonstrate public health conditions that are consistent with CDC guidance for activities such as in-person hearings.
Therefore, FINRA DRS has decided to administratively postpone all in-person arbitration and mediation proceedings scheduled through April 2, 2021.
FINRA considered moving forward with in-person hearings in these locations that demonstrated public health conditions consistent with CDC guidance for activities such as in-person hearings.
However, FINRA administratively postponed hearings in the locations due to arbitrator concern with participating at in-person hearings at this time, or state and local quarantine orders affecting participants who would need to travel to the hearing locations.
“If you have an in-person hearing or mediation session scheduled through this date, you will be contacted by FINRA DRS staff to discuss virtual hearing options or reschedule,” the organization said on its website. “Please note that postponing a hearing will not affect other case deadlines. All case deadlines will continue to apply and must be timely met unless the parties jointly agree otherwise. Further, FINRA will waive postponement fees when parties stipulate to postpone in-person hearing dates scheduled through June 30, 2021. To avoid postponement fees, parties must provide written notice of the stipulation to postpone more than 20 days prior to the first scheduled hearing date. Parties stipulating to postpone in-person hearing dates should also consider stipulating to changing other case deadlines.
“We recognize that this decision may cause inconvenience and we do not make it lightly.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
