SIE (Securities Industry Essentials) Practice Exam

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If the dispute involves a public customer, what must most of the panel be?

Public arbitrators
Private arbitrators
Neutral experts
Government officials

The correct answer is: Public arbitrators

Most of the panel must be public arbitrators because public customers may feel more comfortable with members of the panel who have experience or knowledge within the industry. Private arbitrators (B) may have conflicts of interest and may not be viewed as impartial. Neutral experts (C) may not have the necessary understanding of the industry to effectively handle the dispute. Government officials (D) are not typically involved in arbitration cases.