Prehearing Issues Raised by Virtual Hearings of FINRA Arbitrations

The Financial Industry Regulatory Authority (FINRA) has made significant changes to the arbitration process in response to the COVID-19 pandemic. On March 25, 2020, FINRA initially postponed all in-person arbitrations scheduled through May 31, 2020. Subsequent announcements have extended these adjournments through April 30, 2021, unless all parties and arbitrators agree to proceed via an in-person hearing. FINRA has indicated that it is reviewing whether or not to resume in-person hearings on a location-by-location basis and will do so “when public health conditions would permit[].”