FINRA Arbitration & Investors’ Rights

Investors who have been misled or otherwise wronged by their broker or brokerage firm deserve the opportunity to present their case on an equal playing field. Investment fraud lawyers who understand the complexities of the securities laws can provide that high level of legal representation. Our investment fraud attorneys have years of experience successfully taking on some of America’s largest financial institutions on behalf of the investors we represent.

How FINRA Arbitrations Work

In the financial services industry, many investment and brokerage agreements require disputes to be resolved through FINRA arbitration. The Financial Industry Regulatory Authority (FINRA) is the financial
industry’s self regulating body; it provides arbitration services to resolve disputes between investors and brokers.

Investors have very specific procedures to follow when filing for arbitration with FINRA. Securities arbitration lawyers play an important role in ensuring investors are given a fair chance in FINRA arbitration proceedings.

On average, a FINRA arbitration will take just over one year from filing to be resolved. Typically arbitration follows this general chain of events:

  1. An investor files a the dispute with FINRA in the form of a “Statement of Claim” and agrees to be bound by FINRA’s rules.
  2. Other parties to the dispute, such as the broker or financial
    institution, are served and given 45 days to respond. Their response may
    include their defenses, their own claims, and inclusion other parties
    relevant to the dispute.
  3. There is a period of discovery and other procedures depending on the
    specific facts of each case. Prior to the arbitration hearing, FINRA may
    also assist in facilitating a mediation session.
  4. At the arbitration hearing, the claimant presents oral testimony and
    documentary evidence to prove the allegations in the Statement of Claim.
    Shortly after the hearing is concluded, the arbitration panel of
    impartial experts will issue an “award” or judgment.

If you feel that you have be defrauded, misled or mistreated in the process of investing, contact one of our securities attorneys to learn more about your rights.

Questions About FINRA Arbitration?

If you have questions about FINRA arbitration, a free and confidential consultations are available with one of our securities lawyers by filling out the form to the right, or by calling toll-free (866) 981-4800.

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