Securities arbitration is a legal process through which disputes between customers (investors) and brokers or brokerage firms are typically resolved through the dispute resolution forum of the Financial Industry Regulatory Authority (FINRA). Arbitration gives customers the option to recover losses from brokerage firms due to investment misconduct without pursuing traditional litigation in court. It is often the only way investors can bring claims against brokers and brokerage firms because of mandatory arbitration clauses that are contained in most investor customer agreements.
When pursuing recovery through arbitration, it’s essential to understand that there is a time limit on when you can file. Here’s what you need to know about securities arbitration and the statute of limitations.
The Code of Arbitration Procedure Rule 12206 for customer disputes states, “No claim shall be eligible for submission to arbitration under the Code where six years have elapsed from the occurrence or event giving rise to the claim.” However, depending on the particulars of a case, the time restriction could be more or less than six years. When it comes to filing a securities arbitration, time is of the essence. To learn if you are eligible to file a securities arbitration, it’s critical to speak to an investor claims lawyer as soon as possible.
Suffering financial losses due to your broker's or investment adviser’s negligence is a stressful and frustrating experience. However, help is available, and you may be eligible to recover damages through FINRA arbitration. Our highly experienced investment misconduct lawyers are here to hold financial institutions accountable for bad acts that cost our clients’ their hard-earned savings.