The Financial Industry Regulatory Authority (Finra) announced today the launch of a pilot program offering parties in simplified cases pro bono or reduced-fee telephone mediation.
Participation in the pilot program, which began on January 15, is voluntary and open to cases involving claims of $50,000 or less.
Linda Fienberg, President of FINRA Dispute Resolution, said, "Telephone mediation is a lower-cost alternative, and would benefit dispute resolution forum users in many ways. Besides eliminating the travel and preparation costs typically associated with in-person mediation, telephonic mediation offers greater convenience and flexibility, and is a practical alternative for all parties involved."
Parties interested in participating in the pilot can notify FINRA by visiting finra.org/arbitrationmediation/smallclaims. Also, FINRA staff will notify eligible parties about the pilot program.
Mediators would serve on a pro bono basis on cases involving claims of $25,000 or less in damages. Reduced-fee mediation ($50 per hour) would be available on cases with damage claims between $25,000.01 and $50,000. FINRA will not charge any administrative fee for these cases.