When you invest your money with a brokerage firm and suffer substantial financial losses, securing compensation from the liable party can prove crucial. To get the money you need in these cases, you will likely be required to go through FINRA arbitration. An experienced FINRA arbitration attorney serving Arizona can help you throughout every step of the process.
At Meyer Wilson, we understand the challenges faced by victims of investment fraud and negligence. Our team of experienced investment fraud lawyers serving Arizona has been helping investors recover compensation for over 25 years. Get in touch with us today to schedule your free initial case evaluation with a member of our team.
What Is FINRA Arbitration?
FINRA arbitration is a form of alternative dispute resolution commonly used to settle disputes in the financial industry. The Financial Industry Regulatory Authority (FINRA) is a not-for-profit organization authorized by the U.S. government to help protect investors by holding brokerage firms accountable and creating a fair marketplace.
The vast majority of disputes arising between investors and the brokerage firms handling their money are settled through FINRA arbitration. Meyer Wilson can help you with a wide range of claims, including cases involving:
- Broker negligence
- Asset allocation misconduct
- Unauthorized trading
- Breach of fiduciary duty
- Failure to supervise
FINRA arbitration is used as an alternative to taking a complaint to court. Arbitration is usually a quicker method for resolving a dispute. Furthermore, it is more cost-effective as there will typically be less litigation expenses incurred by both parties.
Pursuing compensation through FINRA arbitration on your own is unlikely to yield favorable results. The arbitration process can be complicated. Furthermore, you can be sure that the other brokerage firm or financial advisor will have an experienced lawyer by their side if you sue them. Hiring an experienced attorney can make all the difference.
An Experienced FINRA Arbitration Lawyer Serving Arizona Can Help With Your Claim
The FINRA Code of Arbitration Procedure establishes the rules and procedures that must be followed as part of the FINRA arbitration process. Typically, when investors sign their investment agreements with brokerage firms, they waive their right to pursue damages through any avenue other than FINRA arbitration.
Beyond establishing the process for FINRA arbitration, the FINRA Code of Arbitration Procedure also outlines the types of disputes that can be decided using arbitration and which matters must be resolved in an alternative manner.
Filing a FINRA Arbitration Claim
The FINRA arbitration process does not begin until you submit your statement of claim to FINRA. Your statement of claim is the single most important document in your case. Because of this, it is essential that you draft it carefully and with the assistance of an experienced lawyer. This document describes the circumstances of your case and why you deserve compensation.
Your statement of claim will be the first impression the arbitrator or arbitration panel will have regarding your case. Your FINRA arbitration attorney serving Arizona can help ensure that it conveys all the necessary information to provide the arbitrators with a clear picture of your losses and the fault of the brokerage firm.
When filing your claim with FINRA, a filing fee is paid. The case filing is done online.. Once you have submitted your statement of claim, the brokerage firm will need to submit their response within 45 days.
FINRA Arbitration Hearings
The specific process used in FINRA arbitration cases varies depending on how much money you are looking to recover. Claims of less than $50,000 are usually handled by a single arbitrator who will decide your case based solely on the written statement of claim you submit and the written response from the brokerage firm.
A single arbitrator is standard for claims of $50,000 to $100,000. However, these cases involve a hearing with witness testimony and the presentation of evidence. In claims of greater than $100,000, a three-arbitrator panel is typical, and a majority vote will make the final decision.
The total time from the submission of your statement of claim to when you receive a decision from the arbitrators is usually 12 to 16 months. During this time, your attorney will build your case and prepare to present it. Most hearings last three to five days, but it can take weeks in some cases.
FINRA Arbitration Rulings
Rulings by a FINRA arbitrator are legally binding, and most of the time, they can not be appealed. After the arbitrator or arbitration panel makes their ruling, a formal award document will be created and include the following information:
- The parties involved
- A description of each of the claims and the defenses presented
- Who prevailed in each claim
- The amount to be awarded to the claimant or an order of dismissal of all claims
If your FINRA arbitration lawyer serving Arizona wins your case, the brokerage firm will need to pay you your money within 30 days. Should they fail to make the payment on time, your attorney will file a petition to have their brokerage license suspended and take steps to secure your award through an attachment levy or garnishment proceedings.
Most Securities and Investment Fraud Claims Are Settled Through FINRA Arbitration
When you invest your money with a brokerage firm, you will sign an investment agreement. There will likely be a clause included in this contract stating that all disputes will need to be resolved through FINRA arbitration. Although arbitration is more straightforward and quicker than going to court, it can still take over a year to resolve your claim.
Financial institutions prefer to handle complaints through arbitration for a variety of reasons. The greatest appeal of this method of dispute resolution is that these proceedings are far more private than a courtroom trial. FINRA arbitration hearings are private, and the only document typically released from these proceedings is the final award.
Reach Out to an Experienced FINRA Arbitration Lawyer Serving Arizona Today
When attempting to recover compensation following the loss of your investment due to fraud or negligence, the best way to improve your odds of a favorable outcome is to hire an experienced Arizona FINRA arbitration lawyer. At Meyer Wilson, our award-winning team has secured north of $350 million for our clients.
Contact us today by completing our online contact form or giving us a call and setting up your free, no-obligation case review.