Written by D. Daxton White• October 8, 2022• 10:46 am• Blog, Securities Fraud

FINRA Arbitration Attorney for Resolving Securities Disputes

FINRA Arbitration & Mediation | FINRA Dispute Resolution

If you’re concerned about investment losses with your financial advisor due to broker negligence or fraud a FINRA arbitration attorney at the White Law Group may be able to help you.

The Financial Industry Regulatory Authority (FINRA), the self-regulator of the securities industry, operates the largest dispute resolution forum in the securities industry. In fact, FINRA Dispute Resolution is the forum for almost all disputes between investors, brokerage firms and individual brokers. This is mainly because the vast majority of brokerage firms have mandatory arbitration clauses in their account agreements that require investors to file their disputes through FINRA.

FINRA Arbitration – Simple Alternative to Litigation

FINRA Arbitration is a formal alternative to litigation in which two or more parties select a neutral arbitrator to resolve a dispute. It is like going to court, but it is usually faster, cheaper and less complex than litigation. FINRA Arbitration has its own specific rules of procedure and operation, including rules that cover deadlines, discovery, and identification of witnesses. To see learn more, see the FINRA Code of Arbitration Procedure.

Resolving Securities Disputes – FINRA Arbitration & Mediation

There are two possible non-judicial proceedings in which you can resolve a disagreement or dispute with your financial advisor or broker; arbitration and mediation.

Investors can file an arbitration claim or request mediation through FINRA when they have suffered investment losses with a brokerage firm or one of its representatives. Investors need to file their claim within six years of the alleged act, although there are some exceptions to the rule. See FINRA Rule 12206 Eligibility.

FINRA Dispute Resolution is not the same as filing an investor complaint. Resolving financial disputes through arbitration or mediation is unrelated to filing an investor complaint.

If you are looking to recover damages due to an unscrupulous or negligent broker, you can file an arbitration or mediation case through FINRA. However, you aren’t limited to one or the other option, you can file an investor complaint and file for arbitration.

Hiring a FINRA Arbitration Attorney

If you have suffered losses investing with your financial advisor or broker, you should first call a FINRA arbitration attorney like the experienced securities lawyers at the White Law Group. Representatives of our firm will go through an intake call with you and see if you have a viable claim. The attorneys will then evaluate your claim, and possibly more forward. See: Can I Sue my Financial Advisor?

The next steps will include specific document discovery obligations and paying a filing fee to FINRA and, of course, filing the claim. The attorneys at the White Law Group will walk you through the process. Our firm has handled over 700 FINRA claims and recovered millions of dollars for our clients throughout the United States and Puerto Rico.

Many of our clients have lost a significant portion of their net worth as the result of the negligence of their financial advisor or broker. We offer a supportive environment for our clients as we attempt to recover these investment losses.

FINRA Arbitration Process

The FINRA arbitration process works differently depending on the size of the claim. Claims for damages of more than $100,000 require an in-person hearing decided by a panel of three arbitrators, with one chairing the hearing.

One arbitrator is sufficient for smaller claims and if a claim is less than $50,000 it may be decided through a Simplified Arbitration Process. In this case, the arbitrator reviews all the materials presented by the parties without an in-person hearing.

FINRA arbitrations usually take between 12-15 months from the date of filing and depositions are discouraged, making the process generally faster and less expensive than litigation filed in Court.

A FINRA arbitrator or panel will listen to the arguments of each party, study the testimonial and/or documentary evidence, and then give a decision. When an arbitration case goes to a hearing, it can take up to 16 months for an award to be determined. The arbitrator’s decision in the dispute is called an award and it is final and binding.

What is FINRA Mediation?

Mediation offers a flexible alternative to arbitration. It is an informal process in which a trained, impartial mediator oversees negotiations between disputing parties, helping them find a mutually acceptable solution.

Mediation can be initiated at any time before arbitration begins and even during an arbitration case before it concludes. Both parties in a dispute must agree to mediation. FINRA does not require parties to mediate.

FINRA mediators may have expertise in certain subject matters, so parties can select a mediator who is knowledgeable in the securities or business area that they are contesting.

Most of the FINRA mediations result in settlement, close to 80 percent, and the process is usually much faster than arbitration. Mediation is not binding until the parties reach and sign a settlement agreement, and it doesn’t impose a solution. Since mediation is a voluntary process, it can be stopped by either party at any time.

National FINRA Attorneys

The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group.

If you believe that you have a viable FINRA arbitration claim and would like to speak with a national FINRA arbitration attorney regarding your recovery options, please call the White Law Group at 888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States.

The White Law Group’s FINRA arbitration attorneys have handled over 700 FINRA arbitration claims involving common claims such as unauthorized trading, unsuitable investments, fraud, negligence, churning/excessive trading, and improper use of margin.