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Printer-Friendly Duty to Disclose Conflicts

All arbitrators must submit biographical information on an arbitrator profile form to the self-regulatory organization (SRO). This information will be sent to the parties to use in the arbitrator selection process, such as determining whether to challenge arbitrators.

It is extremely important that the profile be completed accurately and updated periodically. In addition to completing the profile, arbitrators should become familiar with the Uniform Code of Arbitration (Uniform Code), the arbitration rules of each SRO, and the ABA/AAA Code of Ethics for arbitrators. (See Appendix A - AAA/ABA Code of Ethics for Arbitrators in Commercial Disputes.)

When contacted by SRO staff regarding possible service as an arbitrator, the potential arbitrator should ascertain if any conflicts exist immediately after the staff discloses the following information regarding the case:

1. names of the parties,
2. names of lawyers or agents representing the parties,
3. names of any potential witnesses disclosed by the parties, and
4. the nature of the case.

All arbitrators in securities controversies must qualify as impartial, neutral arbitrators. If the arbitrator does not believe a conflict exists, but rather some association with the parties, counsel, and/or witnesses may be questioned, the arbitrator must disclose the association. When in doubt, disclosure should be the rule. The staff will inform the parties of any facts disclosed by the arbitrators. Such disclosures must be repeated on the record at the beginning of the hearing. The arbitrator should disclose any circumstances that might hinder the rendering of an objective determination.

The obligation to disclose circumstances that might give rise to a conflict or appearance of conflict is a continuing obligation. It includes any information that may surface during the hearing itself. The Code of Ethics sets forth in detail the obligation of an arbitrator to disclose information. (See Appendix A - AAA/ABA Code of Ethics for Arbitrators in Commercial Disputes.)