Arbitration

Securities arbitration is a method of having a dispute between two or more parties resolved by impartial persons who are knowledgeable in securities industry disputes. Those persons are called arbitrators. Arbitration of disputes with broker/dealers has long been used as an alternative to the courts because it is devised as a prompt and inexpensive means of resolving complicated issues. There are certain laws governing the conduct of an arbitration proceeding that must be considered by those planning to use arbitration to resolve the dispute. Most importantly, perhaps, is the fact that an arbitration award is final and binding, subject to review by a court only on a very limited basis. Parties should recognize, too, that in choosing arbitration as a means of resolving a dispute, they generally give up their right to pursue the matter through the courts.

Investors wishing to file a regulatory complaint with FINRA may do so through the Investor Complaint Center. Through the Investor Complaint Center, investors and others can immediately alert FINRA to any potentially fraudulent or suspicious activities by brokerage firms or brokers. Investors may also notify FINRA’s Office of the Whistleblower if they have evidence of or material information about, potentally illegal or unethical activity. The Office of the Whistleblower was established to expedite the review of high-risk tips by FINRA senior staff to ensure a rapid response for tips believed to have merit.

More Information on the Arbitration Process available at: http://www.finra.org/ArbitrationMediation/Parties/ArbitrationProcess/

 

Arbitration Case Flow from FINRA