SEC approves FINRA's overhaul of its Discovery Guide.(Report)

The Securities and Exchange Commission (SEC) granted accelerated approval to the Financial Industry Regulatory Authority's (FINRA) proposed rule overhauling its i Discovery Guide (the Guide). Initially introduced in 1999, the Guide provides guidance to arbitrators and parties regarding discovery obligations during the course of a FINRA arbitration and sets forth lists of documents that are presumptively discoverable by the parties. FINRA originally submitted its proposed revisions to the Guide to the SEC last July and amended its proposed revisions to the Guide in February of this year. The revised Guide as amended can be found at FINRA's web site, www.finra.org/web/groups/arbitrationmediation/@arbmed/@arbrul/documents/arbmed/p123494.pdf

The SEC determined that "good cause exists to approve the proposal, as modified by Amendment No. 1, on an accelerated basis." SEC Release No. 34-64166, p. 21. FINRA has stated that it will convene a Discovery Task Force six months after implementing the revised Discovery Guide "to review substantive issues relating to the Discovery Guide on an ongoing basis, for the purpose of keeping the Discovery Guide current as products change and new discovery issues arise" SEC Release No. 34-64166, pp. 4-5.

FINRA issued Regulatory Notice 11-17 setting …