August 20, 2007
The NASD's Notice of Filing of Proposed Rule Change to Amend the Definition of Public Arbitrator should be amended as to its income exception, with a zero limit.
In order to provide the public with confidence that the system is not biased, it is essential to not only be a fair system, but give the appearance of fairness.
The NASD, or its successor's, proposal concerning setting limits of $50,000 in income earned from the securities industry for a "public arbitrator" is a significant error. The limit on income from so-called "public arbitrators" should be zero or the arbitrator should be recategorized as industry.
It is our belief and the view without exception of the public clients we have represented, that the notion of an "industry arbitrator" is offensive on its face. Arbitrators with a connection of any kind to the industry should be withdrawn from the system.
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