Resolving Securities Disputes through FINRA Arbitration

If you happen to be in the unlucky circumstance involving a securities dispute, you likely will be involved in FINRA arbitration. In fact, you may be obligated to resolve the matter outside of court through binding arbitration administered through the Financial Industry Regulatory Authority (FINRA). The terms of most brokerage firm account agreements require that you bring your investment loss dispute to FINRA’s dispute resolution forum, rather than by filing a lawsuit in court.

One benefit to FINRA arbitration is that it often costs less money and takes less time than filing a lawsuit.

What is FINRA Arbitration?

Arbitration is a private method of resolving disputes, as opposed to court litigation, where the general public generally can review all documents filed in the case and attend and watch the trial.

The first step of FINRA arbitration is the filing a complaint, called a statement of claim. A panel of either one or three arbitrators then is selected, with cases involving more than $100,000 requiring three arbitrators. The arbitrators review all of the pleadings and preside over the final hearing (the trial), where they review documentary evidence and hear witness testimony presented by the parties.

Ultimately, the arbitrators render a written decision called an "award", which states whether the investor won the case and, if so, how much money the brokerage firm or broker must pay to the investor. The award is typically final and binding upon the parties. Once an award is issued, it is entered into FINRA’s publicly available database.

Learn More about FINRA Arbitration

FINRA Arbitration applies to many contemporary cases related to resolving securities disputes and we regularly report on these cases, both to inform the public and enlighten readers about the benefits of FINRA arbitration.

Speak with an Attorney about FINRA Arbitration Today

Not all investment losses are the result of brokerage firm negligence or stockbroker fraud. If you suffered investment losses in your brokerage account, contact an experienced FINRA arbitration lawyer to discuss your case. Most lawyer in that practice area will provide a free consultation and review of your case. And most lawyers in that practice area will handle your case on a contingency-fee basis, which means that the lawyers get paid only if and when they help you recover money from the brokerage firm or broker.

Contact an experienced Dimond Kaplan & Rothstein securities fraud lawyer at (888) 578-6255 for a free consultation to discuss your rights and options. DKR has offices in Miami, West Palm Beach, New York, and Los Angeles.

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