Losing money to the fraudulent actions of a financial advisor can be devastating. Fortunately, you have the right to seek compensation. That said, you need to understand that the only path to compensation in most of these cases is through FINRA arbitration. An experienced FINRA arbitration lawyer can help you through every step of the process.
At Meyer Wilson, we have over 75 years of combined experience handling FINRA arbitration cases. Our skilled team of investment fraud lawyers will work around the clock to build the strongest case possible and ensure you recover the money you deserve. Reach out to us to schedule a free case consultation with a member of our legal team today.
What Is FINRA Arbitration?
The Financial Industry Regulatory Authority (FINRA) is a not-for-profit organization authorized by the U.S. government to oversee financial advisors and help create fairness in financial markets by protecting investors. FINRA arbitration can be used to resolve various disputes, including those arising from breach of fiduciary duty and financial advisor misconduct.
FINRA arbitration is a form of alternative dispute resolution that is often used when dealing with issues between investors and financial advisors. Arbitration offers a more efficient outcome than going to court while also helping both parties save significant time compared to most court cases.
The FINRA arbitration process can be complicated if you are not familiar with it. The financial advisor or brokerage firm you are attempting to recover compensation from will have an experienced lawyer working the case on their end. It is critical that you retain the services of an experienced FINRA arbitration attorney to help level the playing field.
Types of Cases a FINRA Arbitration Lawyer Can Take On
As mentioned earlier, our FINRA arbitration lawyers have a great deal of experience handling cases like yours. We can draw on our extensive legal knowledge and our firm’s resources to make your case successful, no matter how serious your losses are. Depending on the type of fraud or misconduct you’ve fallen victim to, we’ll refer you to one of our following attorneys:
- Failure to supervise lawyer: Failure to supervise happens when brokerage firms fail to exert proper oversight over their advisors, allowing misconduct like unauthorized trading or fraud to occur.Â
- Unauthorized trading lawyer: Unauthorized trading occurs when a financial advisor makes transactions without a client’s consent, violating financial regulations. This misconduct can lead to unexpected losses.
- Asset allocation misconduct lawyer: Asset allocation misconduct happens when an advisor improperly distributes an investor’s funds, exposing them to unnecessary risk or losses. This can include overly aggressive investments, lack of diversification, or misalignment with the investor’s financial goals.Â
- Investment negligence lawyer: Investment negligence occurs when a financial advisor fails to exercise reasonable care in managing investments, leading to client losses. This type of negligence can include poor research, unsuitable recommendations, or failure to disclose risks.
- Breach of fiduciary duty lawyer: breach of fiduciary duty happens when a financial advisor or firm acts in their own interest instead of the client’s, leading to conflicts, excessive fees, or risky investments. This misconduct can cause significant losses, making it important that victims seek fair compensation.
If you’ve suffered investment losses of more than $100,000 due to one of the above-mentioned forms of fraud, our team is here to support you throughout the arbitration process. Reach out to our knowledgeable team today to learn more about your case and the compensation you could receive with the help of an attorney.
The Majority of Investment and Securities Fraud Cases Are Resolved Through FINRA Arbitration
When you sign up to invest your money with a brokerage firm, the investment agreement you sign will likely stipulate that any disputes that may arise will need to be resolved through FINRA arbitration. By working through FINRA arbitration, you deal with a much more streamlined process than the court system.
One of the reasons that financial institutions prefer FINRA arbitration is that the process comes with a level of privacy. These proceedings are private, and the only document related to the arbitration that is automatically released to the public is the amount awarded.Â
The FINRA Arbitration Process
The arbitration process is regulated under the FINRA Code of Arbitration Procedure. When investors sign an investment agreement with a brokerage firm, they will waive their right to have any disputes resolved by a judge or jury.
The FINRA Code of Arbitration Procedure establishes all the rules and procedures of the arbitration process. It sets out what types of disputes are eligible for the arbitration process. It also lays out when to file a claim.
Filing an Arbitration Claim
When you or your attorney file a statement of claim, the formal arbitration process begins. This is the most important document in your claim. This document describes what happened and why you are filing a claim for compensation. This document will be the first impression the arbitrators in your case will receive.
An experienced FINRA arbitration lawyer can help ensure that your statement of claim is clear and accurate and gives the arbitration panel a full view of your case and why you deserve compensation. You will submit your statement of claim online along with a filing fee to begin the arbitration process. After you file your claim, the brokerage firm will have 45 days to respond.
FINRA Arbitration Case Length
The specifics of the arbitration proceedings will depend on the unique details of your claim. Even though arbitration is usually quicker than going to court, you will likely still be looking at a lengthy amount of time to resolve your case.Â
FINRA arbitration proceedings often last between 12 and 16 months. Our FINRA arbitration attorneys can provide more information on how long your case may take to reach a conclusion.
FINRA Arbitration Decisions
The decision of the FINRA arbitration panel is legally binding, and except for some specific exceptions, it can not be appealed. The arbitrators, along with FINRA administrative staff, will prepare the award once a decision has been made, which will:
- Identify the involved parties
- Describe the claims and defenses presented
- State who prevailed in each claim
- State the amount to be awarded or order a dismissal of all claims
If our FINRA arbitration attorneys win your case, the financial advisor will have 30 days to pay the money they owe. If they fail to pay within 30 days, your lawyer can petition FINRA to suspend their brokerage license and attempt to get you the money you deserve through attachment levy and garnishment proceedings.
Get Help From an Experienced FINRA Arbitration Attorney Today
When pursuing compensation after suffering financial losses due to fraud or negligence, having an experienced lawyer by your side can make all the difference. At Meyer Wilson, our award-winning team has recovered over $350 million in compensation for investors like you.Â
Contact us today to schedule a free consultation with a member of our legal team. We’ll meet with you to discuss your investment losses, answer any questions you have about the arbitration process, and help you take the first steps toward your compensation.