After filing your FINRA arbitration claim, the case moves to the “discovery” process, where parties exchange facts and information to support their claims and prepare for the arbitration hearing.
The discovery process for FINRA arbitration includes rules for requests, responses, and objections. It also outlines how to resolve disputes and address discovery abuses with possible sanctions.
A FINRA arbitration lawyer can help you work through these steps while protecting your best interests. We’re here to provide clarity and support throughout the process.
Understanding the Discovery Process in FINRA Arbitration
The discovery process is an important step in resolving investor disputes through the Financial Industry Regulatory Authority (FINRA). During this phase, both parties exchange relevant documents and information to support their claims and defenses.
An investment fraud lawyer can guide you through this process, helping you understand your rights and responsibilities.
Key Elements of FINRA Discovery
FINRA’s Discovery Guide outlines specific rules for document production to promote fairness and transparency. It includes:
- Two lists of documents that are presumed necessary in customer cases
- Clear guidelines for addressing disputes over discovery requests
- Procedures for seeking sanctions when one party fails to comply
These rules are regularly updated, making it essential to stay informed throughout the arbitration process.
How We Support Your Case
Our investor claims legal team is experienced in handling the discovery process and will work to ensure your interests are fully represented.
From identifying required documents within the Discovery Guide to managing disputes, we’re here to provide the knowledge and support you need for a strong case. Let us help you pursue a resolution that works for you.
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What Documents You May Need in FINRA Discovery
You may request several types of discoverable documents during the FINRA discovery process, including:
- Emails
- Recordings
- Trading records
- Other relevant documents
FINRA’s discovery rules can seem broad, but the Discovery Guide provides a helpful framework. It outlines a standard list of documents brokers must produce in every case, which varies depending on the case’s value.
Objecting to Discovery Requests
In FINRA disputes, parties have the right to object to a document request made by the opposing side. These objections may challenge the relevance, scope, or burden of the requested information. Such challenges help limit the production of documents to those that are appropriate for the case.
When raising objections, it’s essential to provide clear and specific reasons. Legal arguments or case law may be necessary to support the objection. Improper or unsupported objections could result in sanctions, so careful consideration is key.
If disputes arise over discovery obligations, parties may need to negotiate or seek resolution through motions. Understanding when and how to object helps maintain fairness and focus throughout the process.
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Consequences of Non-Compliance with FINRA Discovery Rules
FINRA requires all parties to follow its rules for the exchange of documents during discovery. If a party fails to comply, a Motion to Compel can be filed with the arbitrator, either:
- In writing
- Verbally during a hearing session
Under FINRA Rule 12503, motions can take various forms, including a simple letter. The opposing party must respond, and the arbitrator reviews both the motion and response before deciding if the requested documents must be provided.
Understanding how to address non-compliance is an important step in maintaining fairness throughout the discovery process.
Subpoenas in FINRA Discovery
Subpoenas are an important part of the FINRA discovery process. These legal documents require the production of documents or compel individuals to testify as witnesses, providing valuable evidence for a case.
Subpoenas can be especially helpful when obtaining information from third parties, such as banks or financial institutions. To be enforceable, they must meet FINRA’s specific requirements and be carefully drafted.
Knowing how to issue subpoenas and address potential challenges from opposing parties or witnesses is key to building a strong case. Subpoenas are a strategic tool that can make a significant difference in gathering the information needed for arbitration.
Orders for Production or Appearance without Subpoenas
In FINRA disputes, parties can request orders for the production of records or appearance without using subpoenas. If a party fails to comply with discovery requests, arbitrators can issue an order requiring them to provide documents or attend questioning.
This approach enforces compliance with discovery obligations without the formalities of a subpoena. Arbitrators may impose sanctions if an order is ignored.
A FINRA arbitration attorney can help you use these options to secure the cooperation and evidence needed for your case.
Sanctions in FINRA Discovery
In FINRA arbitration, sanctions may be imposed on parties who fail to meet their discovery obligations or engage in improper conduct during the process. Arbitrators have the authority to address these issues to maintain fairness and order.
Sanctions can take many forms, such as fines, penalties, or even the dismissal of specific claims or defenses. Following the guidelines in FINRA’s Discovery Guide and Document Production Lists is key to avoiding these consequences.
Adhering to discovery rules helps ensure a smoother process and a fair resolution for all parties involved. If you have questions about your obligations or the risk of sanctions, we’re here to guide you every step of the way.
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Discovery Deadlines
Discovery deadlines in FINRA arbitration are outlined in specific rules to keep the process organized and timely. Under Customer Code Rule 12506, documents listed in the Document Production Lists must be provided within 60 days of the date the party’s answer is due.
Similarly, Rule 12507 requires any additional requested documents or information to be produced within 60 days of receiving the discovery request. These rules help streamline the exchange of information and maintain a clear timeline for both parties.
Adhering to these deadlines is essential to keep the process moving smoothly. Our team is here to help you stay on track and meet the requirements outlined by FINRA’s discovery rules.
Why Choose Meyer Wilson for Your Arbitration Case?
If you have questions about the discovery process for FINRA arbitration or the arbitration process, Meyer Wilson can help. Our team is experienced in guiding clients through every stage, including the discovery phase, providing the support you need to feel informed.
With over $350 million recovered and thousands of clients helped, we are committed to protecting your rights. A FINRA arbitration lawyer from our team can provide the insight and guidance you need to pursue a fair resolution.
If you suffered investment losses of more than $100,000 due to the misconduct of a stockbroker, investment advisor, or financial firm, contact Meyer Wilson today to discuss your case. We’re here to help you take the next step with confidence and clarity.
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