Introduction
In August 2025, the Financial Industry Regulatory Authority Dispute Resolution Services (“FINRA DRS”) amended certain Rules related to the length of processing arbitration proceedings. FINRA DRS implemented these amendments to materially shorted the duration of qualifying arbitration proceedings by establishing clear eligibility standards, rule-based deadlines, and specific guidance for arbitrators regarding completion timelines. The new rules represent a significant policy shift intended to ensure that older or seriously ill parties are able to meaningfully participate in arbitration through the resolution of their claims. These developments are discussed more fully below.
Changes to FINRA’s Expedited Track for Seniors and Serious Ill Parties
In SR-FINRA-2024-021 (Proposed Rule Change to Amend the Codes of Arbitration Procedure to Accelerate the Processing of Arbitration Proceedings for Parties Who Qualify Based on their Age or Health Condition ), FINRA sought to amend both the FINRA Code of Arbitration Procedure for Customer Disputes as well as the Code for Industry Disputes to make changes to certain provisions relating to the accelerated processing or arbitration proceedings for parties who qualify based on their age or health condition. The Securities and Exchange Commission (“SEC”) has issued an Order approving the proposed changes.
Under the approved framework, a party may request accelerated processing when filing a statement of claim or answer if they meet one of two eligibility paths under 12808 or 13808:
- Age: First, a party is eligible if they are at least 70 years of age at the time of the request. FINRA justified the age threshold by stating that individuals who are 70 or older are more likely to experience a serious health decline or death before the conclusion of standard arbitration, creating a heightened risk that they would not be able to meaningfully participate throughout the proceedings, which could impair the fairness of outcomes.
- Health Condition: Second, a party may qualify based on an eligible health condition, which requires a certification that the party has received a medical diagnosis and prognosis and reasonably believes that accelerated processing is necessary to prevent prejudice to their interest in the arbitration. The rules do not compel disclosure of the underlying medical details, and providing the required certification alone cannot serve as grounds for discovery or questioning about the party’s health condition. This safeguard was included to protect personal privacy and prevent abusive information demands.
If the Director determines that the requesting party meets the criteria, the case advances under an accelerated timeline. These new rules shorten the period for administrative issuance of arbitrator lists, requiring the Director to send those lists as soon as practicable after the last answer is due, even if the parties agree to extend answer dates. This change in the process is intended to eliminate procedural delays and signals that expedited cases will receive priority scheduling from the forum.
Arbitrators are also directed to attempt to render an award within 10 months of the eligibility determination and are instructed to hold a prehearing conference to set discovery, briefing, motion, and hearing schedules consistent with that expected timeframe. Some flexibility does remain in the scheduling process to accommodate exceptional circumstances.
Timeline Changes to Current Practices
To align with the 10-month benchmark, certain longstanding procedural deadlines are significantly reduced. The time to serve an answer or respond to a third-party claim is shortened from 45 to 30 days. See FINRA Rule 12808(b)(2)(D)(i); 13808(b)(2)(D)(i). The time for parties to rank and return arbitrator lists is shortened from 20 to 10 days. See FINRA Rule 12808(b)(2)(D)(iii); 13808(b)(2)(D)(iii). In customer cases, the deadline for required document production under FINRA’s Document Production Lists is shortened from 60 to 35 days after the answer is due, unless parties agree otherwise. See FINRA Rule 12808(b)(2)(D)(iv). All other discovery responses are shortened from 60 to 30 days, again subject to agreements between the parties or panel approval for extension in certain matters. See FINRA Rule 12808(b)(2)(D)(v); 13808(b)(2)(D)(iv). FINRA stated that these accelerated discovery periods are manageable in most cases and consistent with the goals of the new rules, but it emphasized that arbitrators retain authority to extend deadlines. Such extensions, however, should be the exception rather than the norm.
Implementations of the New Accelerated Process
The amendment of Rules 12808 and 13808 represent a substantial procedural shift in the administration of FINRA arbitration. By imposing shortened deadlines for responsive pleadings, arbitrator rankings, and discovery obligations, and by instructing panels to endeavor to issue awards within ten months, FINRA has created a dispute resolution track that is more structured than its previous system.
Although arbitrators retain discretion to grant extensions in appropriate circumstances, the framework makes clear that such deviations are intended to be the exception and not the rule. By reinforcing speed, predictability, and case management discipline, the revised arbitration procedures are set to produce shorter and more effective proceedings.