The Recommendations

Key recommendations of the Ruder task force on reforming the securities arbitration system of the National Assn. of Securities Dealers:

- Set a cap on punitive damages. The limit would be $750,000, or twice actual damages, whichever is less.

- Allow less public disclosure of customer complaints against brokers and settlements paid by them. The task force said this would encourage settlements.

- Toughen the rules on turning over evidence, which would require strict enforcement by arbitrators and automatic production of key documents.

- Allow each side to choose the arbitrators from a list, instead of panels being selected by the NASD staff.

- Recruit better-trained, high-paid arbitrators, which should encourage better-qualified people to apply.

- Scrap a “six-year eligibility” rule that bans arbitration of claims in which the alleged wrongdoing occurred more than six years ago.