WealthManagement Magazine

Could Industry-Run Arbitration be Made Optional?

The Securities Industry Conference on Arbitration (SICA), an advisory body to the self-regulatory organizations (SROs), has formed a committee to look into alternatives to SRO-sponsored arbitration.Gus Katsoris, professor of law at Fordham University Law School in New York, a public member of SICA and a member of the alternative options committee, says: Were looking at several areas. It doesnt mean

The Securities Industry Conference on Arbitration (SICA), an advisory body to the self-regulatory organizations (SROs), has formed a committee to look into alternatives to SRO-sponsored arbitration.

Gus Katsoris, professor of law at Fordham University Law School in New York, a public member of SICA and a member of the alternative options committee, says: Were looking at several areas. It doesnt mean a decision has been reached. But were looking at a separate independent forum or having alternative forums that are acceptable. There would be a pilot program to see how this would work out and guidelines for implementation.

Katsoris adds that the committee has made good faith progress.

When questioned about whats going on with the alternative options committee, Paul Dubow, the Securities Industry Association rep to the SICA committee and general counsel with Morgan Stanley Dean Witter in San Francisco, says, I cant talk about it because we havent made any decisions.

Registered Representative attempted to contact Robert Clemente, director of arbitration at the NYSE and a member of the SICA committee, but the exchange would not allow him to be interviewed for this story.

There have been no formal proposals on alternatives to arbitration submitted to SICA, according to Naples, Fla., attorney Tom Grady, a public member of SICA who does not serve on the alternative options committee. Its very preliminary and really more exploratory, says Grady.

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