Finra names new head of arbitration

The Financial Industry Regulatory Authority Inc. has selected Richard W. Berry, a 19-year veteran of the organization, to head its arbitration system. Mr. Berry will become executive vice president and director of dispute resolution on Dec. 1. He will replace Linda Fienberg, who was president of Finra Dispute Resolution, the mechanism for resolving customer claims against brokers run by the industry-funded broker-dealer regulator. Ms. Fienberg, who has been at Finra for 18 years, is retiring at the end of November as both head of arbitration and as chief hearing officer. Last month, Andrew Perkins, Finra's deputy chief hearing officer, was named to replace Ms. Fienberg as chief hearing officer. Mr. Berry, currently senior vice president of Finra Dispute Resolution, was chosen over another internal candidate. “Rick is an effective and thoughtful leader who brings a fresh perspective at a crucial time as we build the future of the forum,” Richard Ketchum, Finra chairman and chief executive, said in a statement. The change in leadership comes as Finra's arbitration system is under increasing pressure. It has been criticized for favoring Wall Street and letting brokers too easily clear their online records of disciplinary actions. And the Public Investors Arbitration Bar Association recently released a report asserting that Finra's pool of 6,376 arbitrators is too old and lacks diversity. Finra has tightened arbitration rules and made several other reforms to the process over the last few years. In July, it established a task force to study further changes to the system. Nearly every brokerage customer contract includes a mandatory arbitration clause. George Friedman, a former Finra executive vice president and director of Finra arbitration, said Mr. Berry has “excellent relationships” with both the industry and those who represent customers. “Rick is very bright, energetic and well-liked,” said Mr. Friedman, who now owns an eponymous consulting firm. “I'm sure he will do very well.”