FINRA has submitted a proposed rule change to the SEC aimed at speeding up arbitration proceedings for parties who are elderly or suffering from serious health conditions. The proposal would introduce new FINRA Rules 12808 and 13808—collectively known as "Accelerated Processing"—to the Codes of Arbitration Procedure for both customer and industry disputes.

Currently, FINRA's Dispute Resolution Services (DRS) offers an expedited program, but it only accelerates internal administrative steps like arbitrator selection and initial scheduling. This limited approach results in only marginal time savings. Under the proposed rule, FINRA seeks to implement rule-based deadlines and explicit directives for arbitrators, cutting resolution time by approximately six months.

Eligibility Criteria for Accelerated Processing

To request accelerated processing, a party must either:

• Be at least 70 years old, or

• Certify that they have a serious medical condition requiring expedited resolution to avoid prejudicing their interests in the arbitration.

Importantly, parties making medical claims need not disclose specific medical details, and such certification cannot be used to compel additional information or questioning at hearings. The proposal also allows other parties to request scheduling accommodations based on age or health, even if they do not meet the formal eligibility criteria.

Director's Role in Eligibility Determination

The Director of DRS would assess whether the request meets the criteria. This determination would be objective, verifying age or proper certification, without evaluating the reasonableness of the party's belief that expedited processing is necessary.

Key Procedural Changes Under the Proposal

If approved, the proposal would accelerate proceedings in three primary ways:

• Faster Arbitrator Selection: The Director must send arbitrator lists to parties "as soon as practicable" after the last answer is due, regardless of any agreed-upon extensions.

• Case Resolution Timeline: Panels would be directed to aim for final awards within 10 months from the date the Director confirms eligibility for accelerated processing. A prehearing conference would be required to set deadlines and hearing dates consistent with this target, though the 10-month goal would remain a guideline rather than a mandate.

• Shortened Default Deadlines: The proposal would compress several key deadlines:

- Serving Answers: From 45 days to 30.
- Responding to Third-Party Claims: From 45 days to 30.
- Returning Arbitrator Lists: From 20 days to 10.
- Customer Case Discovery Responses: From 60 days to 35.
- Other Discovery Requests: From 60 days to 30.

FINRA believes these deadlines are manageable and would not compromise fairness. Panels and parties would retain the flexibility to extend deadlines where justified, using existing Code provisions.

SEC Review and Next Steps

On March 26, 2025, the SEC initiated proceedings under Section 19(b)(2)(B) of the Exchange Act to further analyze whether the proposal aligns with the Act and to allow for additional public input. This procedural step signals no conclusion but opens the door for a deeper review of the legal and policy implications.