Financial Markets and Institutions:
Procedures for Updating Arbitrator Disclosure Information
GAO-01-162R: Published: Nov 9, 2000. Publicly Released: Dec 4, 2000.
The National Association of Securities Dealers (NASD) subsidiary, NASD Dispute Resolution (DR), failed to update its arbitrator disclosure system in a timely manner. As a result, several parties in an arbitration did not receive timely information on their arbitrator. To reduce the potential for further errors, NASD-DRplans to: (1) introduce a form that will allow arbitrators to submit updated information electronically, and (2) centralize processing of the information in itsDepartment of Neutral Management. In 1992 and 1998, NASD-DR also used other measures to ensure that arbitrator background information was current. Because NASD-DR has made these changes and plans to make additional improvements to its procedures for updating arbitrator disclosure information, GAO is not making any further recommendations at this time.