FINRA mediators are independent neutrals, and are not employees of FINRA Dispute Resolution. They are carefully screened and represent a cross-section of people, diverse in culture, profession, and background. Many have extensive knowledge of securities law and industry practices.
Many FINRA mediators are also arbitrators with training and experience in resolving securities matters. However, the skills required for each role are unique, and the two neutral pools are separate and distinct. NASD rules prohibit an individual from serving as both a mediator and arbitrator on the same case.
FINRA Dispute Resolution staff and FINRA's Mediation Committee vigorously scrutinize each applicant against demanding qualification criteria. To qualify as an FINRA mediator, an individual must submit four letters of reference from parties who have observed the applicant's mediation technique. Formal mediator training and experience as a mediator are additional requirements of service. All parties must agree to the selection before a mediator is assigned to a case. Either side can stop the mediation process if dissatisfied with the mediator.
In the United States there are only a limited quantity of experienced securities mediators, and experienced counsel for all parties know, or have worked with these mediators, whom are generally well known within the securities litigation industry.
Whether using the facilitative or evaluative approach, or a combination thereof, the parties need to respect the credibility of any mediator in connection with the independent perception and assessment of important legal issues that will effect both sides to any securities arbitration or litigation.