If you have a Dispute with your Broker

Whether you realized it at the time or not, when you established your brokerage account, you likely entered into an arbitration provision that provides that if you have a dispute with your broker you agree to waive your right to bring that claim in court and to arbitrate that dispute through FINRA’s Dispute Resolution process. Typically, such arbitration provisions are enforceable and FINRA’s dispute resolution process is the proper venue for a securities related dispute between an investor and a financial professional or broker-dealer

What is FINRA?

FINRA, otherwise known as the Financial Industry Regulatory Authority, is an administrative body that regulates the securities industry and provides a forum for securities related disputes. FINRA has several responsibilities they maintain to ensure investor safety in the securities industry. Some important things to note about the responsibilities of FINRA are their ability to monitor licensing and registration, rulemaking, examinations and inspections, and much more.

Filing an Arbitration Claim with FINRA

If you are looking to file a FINRA complaint through FINRA’s dispute resolution process and to initiate an arbitration claim against your financial professional or broker-dealer, FINRA has set up an online filing procedure which can be accessed on the FINRA website.

The good news about FINRA is that the dispute resolution process is less costly and quicker than litigating in Court. However, FINRA has its own set of rules (known as the FINRA Code of Arbitration). For those not experienced in arbitrating securities related disputes through FINRA, these rules can make the arbitration process daunting for even experienced attorneys that are used to litigating in Court.

The first thing you should know prior to filing a claim is the distinction between arbitration and mediation. It’s important to remember that arbitration and mediation are influenced by the characteristics of the dispute, the level of control sought, and the preferences of the parties. In certain cases, mediation may be initiated first, and if no agreement is achieved, the process may advance to arbitration. According to FINRA, arbitration is similar to going to court, but is usually faster, cheaper and less complex than litigation. Then, there’s mediation which is viewed as a more informal process in which a trained, impartial mediator facilitates negotiations between disputing parties, helping them find a mutually acceptable solution.

Steps of Filing a FINRA Complaint 

The first steps for parties who want to file an arbitration claim is to submit the following to FINRA:

Statement of Claim – The Statement of Claim is a document you compose that provides intricate details such as who is filing the claim, whom the claim is against, intricacies of the dispute, relevant dates, and the type of relief requested, including, but not limited to actual monetary damages, interest and specific performance. It is imperative that you provide as much detail as possible since this could increase the likelihood of restitution, and provide your securities attorney with key information.

Submission Agreement – The Submission Agreement from FINRA is a document requiring your signature,and date to confirm your comprehension of FINRA’s regulations and your commitment to adhere to the decision made by the arbitrator(s). It’s essential to ensure that the parties mentioned in the Submission Agreement align with those identified in the Statement of Claim. Remember that when submitting a claim electronically, you can choose to electronically sign the Submission Agreement as part of the process when filling out the online Claim Information Form.

Filing Fee – To initiate the arbitration process, a filing fee must be provided to cover associated costs. This fee is determined by the total amount of the claim and is outlined in the filing fee schedule specified in FINRA Rule 12900. When submitting a claim online, payment options include credit card or bank transfer. If you are self-represented and opt to file your claim via mail, be sure the check is made payable to FINRA Dispute Resolution Services.

Do you need a Securities Fraud Attorney?

Although the hiring of an attorney in securities arbitration matters is not required, it can be extremely beneficial. Typically, securities fraud attorneys representing investors handle such cases on a contingency fee basis.

For more information on how to file a FINRA complaint, or to discuss your particular case with an attorney, feel free to contact The White Law Group at 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. With over 30 years of securities law experience, The White Law Group has the expertise to help investors defrauded in securities, investment and commodities or futures transactions. For more information on The White Law Group, please visit our website at https://whitesecuritieslaw.com.