Key recommendations include:

• Increase compensation to FINRA arbitrators, which is well-known to be far below market rates for arbitrators’ time and expertise, because of the Task Force’s “strongly held opinion… that the most important investment in the future of the FINRA forum is in the arbitrators”;
• Increase the depth and diversity of the arbitrator and mediator pool through additional recruitment efforts;
• Increase arbitrator training;
• Adopt measures to encourage the writing of explained decisions, to improve transparency of the forum, including mandatory explained decisions unless one party opts out;
• Improve arbitrator disclosure reports and checklists;
• Change the rules to require automatic mediation of claims in arbitration unless one party opts out and financial incentives for early successful mediation;
• Create a special arbitration panel to handle expungement requests;
• Offer an affordable, truncated in-person hearing as an alternative to a paper arbitration for low-dollar-value claims;
• Expressly bar class action waivers in customer agreements (i.e., codify the holiding by the FINRA Board of Governors in the Schwab disciplinary action); and
• Consider funding law school securities clinics through FINRA fines and penalties.

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