Broker arbitration rules proposed

A securities industry organization that regulates stockbrokers proposed arbitration rules Wednesday designed to help individual investors by curbing the ability of brokerages to file motions to dismiss cases.

The Financial Industry Regulatory Authority said the rules would "significantly" limit the number of dismissal motions and impose "strict sanctions" on firms that abuse the process. Dismissal motions in four years jumped from 7% to 28% of cases where rulings were handed down, the authority said.

"It's a litigation tactic that is interfering with the kind of fair, time-efficient and cost-efficient forum that investors deserve," said Linda Fienberg, president of FINRA Dispute Resolution, the regulator's office that manages the arbitration process.