How to Prepare for a FINRA Arbitration

After losing money due to investment fraud or another violation by the financial firm handling your money, you will likely need to pursue compensation through FINRA arbitration. There are many steps you and your lawyer can take to prepare before arbitration begins, including filing a claim, selecting arbitrators, attending a prehearing conference, exchanging discovery, and hiring expert witnesses..

At Meyer Wilson, we have extensive experience with the FINRA arbitration process and can help you prepare your case. Our experienced team of investment fraud lawyers will walk you through every step of the arbitration process and ensure you are prepared. Contact us today by phone or through our website to set up your free case consultation.

Filing a Claim

When you sign an investment contract with a financial advisor or brokerage firm, the terms of the deal will likely state that all disputes will need to be resolved through Financial Industry Regulatory Authority (FINRA) arbitration. There are several steps to take when filing an arbitration claim after suffering losses caused by investment fraud or another form of misconduct.

Before you do anything else, the best first step is to secure the services of an experienced attorney from Meyer Wilson, who can help you through every step of the process. At our firm, we have handled countless FINRA arbitration cases over the past 25 years and can significantly improve your chances of getting a favorable case result.

Filing Your Statement of Claim

After retaining legal counsel, you will need to review the Statement of Claim prepared by your lawyer that will be submitted to FINRA. Your Statement of Claim should include:

• A description of the dispute
• The involved parties
• The amount of money being pursued
• Supporting documents

The Statement of Claim will be the first impression you make on the arbitrator or arbitration panel in your case. For smaller claims, the arbitrator may make their decision solely based on this document and the written response from the respondent.

Along with the Statement of Claim, you will need to submit a Submission Agreement, which confirms that the dispute will be resolved through FINRA arbitration and that the parties will abide by the decision of the arbitrator or arbitration panel. Along with these documents, you will need to submit the required filing fee or a waiver request.

After filing, FINRA will assign you a case number, and the party from whom you are attempting to recover compensation, known as the respondent, will have 45 days to submit an answer to your Statement of Claim.

Build Your Case

While you wait for the respondent to submit their reply, you will meet with your attorney and discuss your case. Your lawyer will build your case for the arbitration hearing, and any additional evidence you can collect to support your claim will help make their job easier and increase your chances of securing the compensation you need from the liable party.

Ensure you give your attorney a list of any potential witnesses who may be able to support your claim. 

Selecting Arbitrators

The next step will be to select the arbitrators for your case. For every FINRA arbitration case, a computer will generate a random list of potential arbitrators for a case. The list will be distributed to both parties with an Arbitrator Disclosure Report, which will detail the background of each arbitrator. 

Your lawyer can help you identify arbitrators who are fair and open-mindedr based on their previous rulings in past arbitration cases. Meyer Wilson has extensive research files on FINRA arbitrators from all around the country. 

The arbitrator ranking process is a critical part of the process since FINRA arbitration rulings are legally binding.

Both parties will be given the opportunity to remove some of the arbitrators from consideration and list the remaining arbitrators in their order of preference. Once you have removed and ranked the arbitrators on your list, you will return it to FINRA. FINRA will compare the lists from both parties and assign a single arbitrator or panel of three arbitrators to your case.

Attend an Initial Prehearing Conference

After the arbitrators for your case have been finalized, the arbitrator or arbitration panel will hold an initial prehearing conference. In most cases, this conference is held over the telephone or through a video conference. Your attorney will represent you in this conference, and your presence is not required, but you may attend with your lawyer.

During this conference, several points will be discussed, including procedural issues, mediation as an alternative resolution option, and the date of the final hearing. Your lawyer may also file any motions that make sense for your case during this conference.

Discovery

The next step in the process is discovery. During discovery, you and the other party will exchange documents and identify any witnesses you intend to call during arbitration. FINRA has detailed rules regarding the documents that need to be disclosed during the discovery process and how everything should be handled.

After the discovery process, many cases are resolved through mediation. Otherwise, if your case does not get resolved through a settlement, the next step is to attend and participate in the arbitration hearing, where your investment fraud attorney will argue your case and attempt to recover the money you need and deserve from the liable party.

Get Started Preparing Your Case for FINRA Arbitration Today

If you suspect that you were the victim of investment fraud, contact an experienced attorney as soon as possible. There are strict deadlines for filing an arbitration claim, so it is critical for you to act quickly. 

Furthermore, by getting started early, you will put your lawyer in the best position to build a strong case on your behalf.

At Meyer Wilson, we have helped thousands of clients through the FINRA arbitration process over the last 25 years. Our firm has successfully recovered more than $350 million on behalf of those we represent. Contact us today by phone or through our website to schedule a free case review with a member of our legal team.