After suffering significant financial losses due to the negligence or malfeasance of your financial advisor, recovering compensation can be critical. You need to understand that the only path to compensation in most of these cases is through FINRA arbitration. An experienced FINRA arbitration attorney can help you through every step of the process.
At Meyer Wilson, we have handled countless FINRA arbitration cases. Our experienced team of investment fraud lawyers will work around the clock to build the strongest case possible to ensure you recover the money you deserve. Reach out to us by phone or through our website 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 brokers and help create fairness in financial markets by protecting investors. FINRA arbitration can be used to resolve various disputes. Our team that handles these cases includes:
- Failure to supervise lawyers
- Unauthorized trading lawyers
- Asset allocation misconduct lawyers
- Broker negligence lawyers
- Breach of fiduciary duty lawyers
FINRA arbitration is a form of alternative dispute resolution that is used frequently when dealing with issues between investors and financial brokers. 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.
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.
However, 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. FINRA arbitration proceedings often last between 12 and 16 months.
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 released to the public is the amount awarded.
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, it begins the formal arbitration process. 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 along with a filing fee to begin the arbitration process. Your claim is submitted online. After you file your claim, the brokerage firm will have 45 days to respond.
FINRA Arbitration Hearings
The specifics of the arbitration proceedings will depend on the claim being sought. If seeking less than $100,000, it is considered a small claim and is typically decided by a single arbitrator. If under $50,000, a ruling will typically be made based solely on the written statement of claim and the response from the brokerage firm.
If over $50,000, the arbitrator or arbitration panel for claims over $100,000 will conduct a hearing where witnesses will give testimony and introduce documents into evidence. For cases decided by an arbitration panel, a majority vote will decide your case.
The arbitration process can take 12 to 16 months to resolve from the day you file your claim. While smaller claims involving a single arbitrator can take as little as one day, larger claims tend to take three to five days and, in extreme cases, can take weeks to be resolved.
FINRA Arbitration Decisions
The decision of the FINRA arbitrator or arbitration panel is 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 your FINRA arbitration lawyer wins your case, the brokerage firm 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 over 75 years of combined experience pursuing compensation through FINRA arbitration.
Contact us today to schedule a free consultation with a member of our legal team.