After investing money with a brokerage firm and suffering significant financial losses, recovering damages from the liable party can be essential. To secure compensation in these cases, you will likely have to go through FINRA arbitration. An experienced FINRA arbitration attorney serving Texas can walk you through the process and give you the best chance of winning your case.
At Meyer Wilson, we have been helping the victims of financial fraud recover compensation for over 25 years. Our team of experienced investment fraud lawyers serving Texas will work around the clock to secure a favorable outcome for your case. Reach out to us today to set up a free case review with a member of our legal team.
What Is FINRA Arbitration?
FINRA arbitration is a process used to resolve a wide range of disputes in the financial industry. FINRA stands for Financial Industry Regulatory Authority. This institution is a not-for-profit organization authorized by the United States government to help protect investors by ensuring that investment firms play by the rules for a fair marketplace.
In most cases, disputes that arise between investors and brokerage firms are resolved through FINRA arbitration. Our experienced team handles a wide range of disputes in Texas, including:
- Failure to supervise
- Broker negligence
- Unauthorized trading
- Breach of fiduciary duty
- Asset allocation misconduct
FINRA arbitration is used in place of a courtroom trial and is classified as a type of alternative dispute resolution. Arbitration is typically quicker and more straightforward than going to court. It also is more cost-effective as both parties will incur fewer legal fees.
Attempting to recover damages through FINRA arbitration on your own can be challenging. There are many subtleties to the process that can be hard to understand. Furthermore, you can expect to be going up against an experienced lawyer working on behalf of your financial advisor or brokerage firm when you sue them. Securing the services of a FINRA arbitration attorney serving Texas can be essential.
The Majority of Securities and Investment Fraud Cases Go Through FINRA Arbitration
When you sign your investment contract with a brokerage firm, it will likely include a clause that states that all disputes will be resolved through FINRA arbitration. While arbitration is a more streamlined process that typically results in a much quicker resolution, it can still take over a year to settle your claim.
Financial institutions tend to prefer arbitration over court for several reasons. However, the primary appeal is typically the private nature of these proceedings. FINRA arbitration proceedings are not open to the public, and the only document released to the public in most cases is the amount awarded.
An Experienced FINRA Arbitration Attorney Can Guide You Through the Process
The rules and procedures used during arbitration are outlined in the FINRA Code of Arbitration Procedure. In most cases, investors waive their rights to pursue compensation through a method other than arbitration when they sign their investment agreement with a brokerage firm.
In addition to stating the process of a FINRA arbitration, the FINRA Code of Arbitration Procedure also establishes the types of disputes that can be settled through arbitration and what will need to be resolved in another manner.
Submitting a FINRA Arbitration Claim
The arbitration process starts the moment you or your attorney submit your statement of claim to FINRA. This statement is the most important document in your case, so you must craft it carefully. Your statement of claim will describe what happened in your case and lay out the reason you deserve compensation.
Your statement of claim is the first impression the arbitrator or arbitration panel will have of your case. By working with an experienced FINRA arbitration lawyer serving Texas, you can ensure that this document is clear and concise and provides the arbitrator(s) with a clear picture of the damages you suffered and why you deserve to recover compensation.
Along with your FINRA application, a filing fee is paid. The claim is submitted online. F After your claim has been submitted, the brokerage firm will have 45 days to issue their response.
FINRA Arbitration Hearings
The specific process for FINRA arbitration in your case will depend on how much money you are seeking in your claim. Claims under $50,000 are generally handled by a single arbitrator who will make their decision based solely on your written statement of claim and the written response submitted by the brokerage firm.
Claims ranging from $50,000 to $100,000 are also typically handled by a single arbitrator. However, for these cases, a hearing will be conducted, in which evidence will be produced along with witness testimony. For claims over $100,000, a three-arbitrator panel is standard, and the claim will be decided by a majority vote after a hearing.
The amount of time it takes to receive a decision in your case after submitting your statement of claim is typically 12 to 16 months. During this period, your lawyer will work to build a strong case on your behalf. The actual hearing usually lasts from three to five days but can take weeks in certain cases.
FINRA Arbitration Rulings
The ruling of the FINRA arbitrator or arbitration panel is legally binding and, in most cases, can not be appealed. Once the arbitrators have reached a decision, a formal award will be drafted. The information listed in this document will include:
- The parties involved
- A description of the claims and the defenses presented
- Who prevailed in each claim
- The amount to be awarded or an order of dismissal of all claims
If your lawyer manages to win a ruling in your favor, the brokerage firm will have 30 days to pay you your money. If they fail to pay on time, your attorney can petition the court to have their brokerage license suspended and move to secure the money you deserve through an attachment levy or garnishment proceedings.
Get Help From an Experienced FINRA Arbitration Attorney Serving Texas Today
When pursuing compensation after losing money due to investment fraud or negligence, the best way to ensure you recover the money you need is by hiring an experienced Texas FINRA arbitration lawyer. At Meyer Wilson, our team has over 75 years of combined experience and has managed to secure more than $350 million for our clients.
Contact us through our website or by phone to set up a free initial case evaluation today.