When you invest your money with a brokerage firm and suffer substantial financial losses, securing compensation from the liable party can be critical. In most cases, you will have to go through FINRA arbitration to recover compensation. An experienced Georgia FINRA arbitration attorney can help guide you through the process and get you the money you need.
At Meyer Wilson, we have seen the damage that investment fraud and negligence can wreak. Our experienced team of Georgia investment fraud lawyers will work around the clock to ensure a favorable outcome for your case. Contact us today to schedule a free initial consultation with a member of our team.
What Is FINRA Arbitration?
FINRA arbitration is a method of alternative dispute resolution by which most complaints in the financial industry are settled. The Financial Industry Regulatory Authority (FINRA) serves as a government-authorized, not-for-profit organization that helps hold financial brokerage firms responsible for their actions and ensures a fair marketplace.
The majority of disputes arising between investors and brokerage firms are resolved using FINRA arbitration. Meyer Wilson can help you through this process after facing a wide range of investment misconduct, including:
- Asset allocation misconduct
- Breach of fiduciary duty
- Broker negligence
- Unauthorized trading
- Failure to supervise
FINRA arbitration is an alternative to taking a dispute to court. Arbitration is typically more straightforward and quicker than going to trial. In addition, it tends to be a cheaper option for both parties, as they will incur far fewer legal fees.
Pursuing compensation through FINRA arbitration without hiring an experienced attorney is unlikely to yield a positive result. The arbitration process can be complicated, and you will likely be going up against an experienced lawyer hired by your financial advisor or brokerage firm. Securing the services of a Georgia FINRA arbitration attorney can make all the difference.
An Experienced FINRA Arbitration Lawyer Serving Georgia Can Guide You Through the Process
There are several rules and procedures for FINRA arbitration laid out in the FINRA Code of Arbitration Procedure. This code also outlines the conditions under which a dispute can be resolved through arbitration and when another method should be used to settle a dispute.
Filing a FINRA Arbitration Claim
The FINRA arbitration process will start as soon as you submit your statement of claim to FINRA. A statement of claim is the single most important document in any FINRA arbitration case. Because of this, you will want to ensure you have an experienced attorney to help you write it. The document will state the details of your case and explain why you deserve compensation.
Your statement of claim will be the first impression the arbitrator or arbitration panel will have of your case. A FINRA arbitration attorney serving Georgia can help ensure this document contains all the necessary information to convey a clear understanding of the damages you suffered and how the brokerage firm was responsible.
When submitting your statement of claim to FINRA, a filing fee is paid. The claim will be submitted to FINRA online.. After submitting your statement of claim, the brokerage firm will have 45 days to submit their written response.
FINRA Arbitration Hearings
The process for your FINRA arbitration proceedings will depend largely on how much money you are attempting to recover. For claims of less than $50,000, a single arbitrator will likely rule on your case. Their decision will be based solely on the written statements of both parties without a hearing.
Claims ranging from $50,000 to $100,000 are usually presided over by a single arbitrator as well. However, for these cases, a hearing will be held, where witness testimony will be heard and evidence will be presented. For claims of over $100,000, a three-arbitrator panel will likely be used, with the final decision being made by a majority vote.
The total time it usually takes for a FINRA claim from the time you file until you receive a decision is typically 12 to 16 months. During this period, your attorney will build your case to ensure it is solid. The actual hearing will likely last three to five days, although, for complex cases, it can take a few weeks.
FINRA Arbitration Rulings
FINRA arbitration rulings are legally binding. In most cases, the decisions of the arbitrators are also not open for appeal. After the arbitrator or arbitration panel has ruled in your case, a formal award document will be created and issued containing the following information:
- The names of the parties involved
- A description of all the claims and the defenses presented
- Who prevailed in each claim
- The amount to be awarded to the claimant or an order of dismissal of all claims
If your lawyer wins your case, the brokerage firm will be obligated to pay you compensation within 30 days. Should they fail to pay on time, your attorney will file a petition with the court to have their brokerage license suspended. Your lawyer will then move to get you your money through an attachment levy or garnishment proceedings.
Most Investment and Securities Fraud Cases Are Settled Through FINRA Arbitration
When you sign an investment contract with a brokerage firm, there will likely be a clause stating that any disputes that may arise must be resolved through FINRA arbitration.
While investment firms prefer arbitration over a trial for a variety of reasons, the main appeal is privacy. All FINRA arbitration proceedings are closed to the public. Furthermore, the only document released from these proceedings tends to be the final award.
Hire an Experienced FINRA Arbitration Lawyer Serving Georgia Today
After suffering financial losses caused by investment fraud or negligence, the best way to improve your odds of securing the money you need is by hiring a FINRA arbitration attorney. At Meyer Wilson, we have secured over $350 million for our clients over the last 25+ years.
Contact us by phone or through our website to schedule your free initial case evaluation today.