[ by Howard Haykin ]  FINRA received SEC approval to amend Rules 12800 and 13800, Simplified Arbitration, for both the Customer and Industry Codes of Procedure.   The rules provide streamlined arbitration procedures for claims involving $25,000 and less.  FINRA will revise the threshold - i.e., raise the dollar limit - so as to allow claims of $50,000 or less to file for simplified arbitration.

Parameters of the Rules. Under Rules 12800 and 13800, unless a party requests a hearing, a single arbitrator resolves the dispute and issues an award based on the written submissions of the parties. In a customer case, only the customer has the option to request a hearing - i.e., an industry party may not request a hearing. In an industry case, only the claimant - whether a firm or an individual - has the option to request a hearing;  other parties may not request a hearing.  FINRA also streamlines discovery for cases administered under these rules. Benefits of Higher Limit. Among the benefits:

• Parties benefit from reduced forum fees because they can avoid hearing session fees and hearing process fees.
• Parties save the time and expense of preparing for, scheduling and traveling to a hearing when an arbitrator decides a case on the pleadings.
• Customers who are unable to retain an attorney, or are uncomfortable appearing at a hearing without representation, now have the option of having their claims decided on their written submissions.
• FINRA can expedite administration of cases under the simplified arbitration rules because the arbitrator and the parties do not need to schedule a hearing.

The amendments are effective for all cases filed on or after July 23, 2012. FINRA Staff Contacts. Direct questions to:  Richard Berry, SVP and Director of Case Administration and Regional Office Services, Dispute Resolution - (212) 858-4307; or Margo Hassan, Asst Chief Counsel, Dispute Resolution - (212) 858-4481. For further details, go to:   [FINRA RegNote 12-30, June 2012].