FINRA responds to the comment letters received by the Securities and Exchange Commission (SEC) with respect to Motions to Dismiss.

Specifically, under the proposal, arbitrators may not grant a motion to dismiss before the conclusion of a claimant’s case-in-chief, with three exceptions: (1) the claimant signed a settlement and release; (2) the respondent was not associated with the account, security, or conduct at issue; or (3) the claim is not eligible for arbitration because it does not meet the existing six-year time limit on the submission of arbitration claims (the “eligibility” rule). The proposal also would implement other procedural safeguards aimed at deterring parties from filing motions frivolously or in bad faith.