When you suffer significant losses in your portfolio due to your financial advisor’s misconduct, you have the legal right to seek compensation. The main path to financial recovery is through arbitration by the Financial Industry Regulatory Authority (FINRA). Let an experienced FINRA arbitration lawyer serving Washington guide you through the process.
Meyer Wilson is exclusively dedicated to investment fraud and misconduct cases. Throughout our practice, we have settled and won many claims through FINRA arbitration. We have served thousands of clients and recovered over $350 million in awards and settlements. You can trust our Washington investment fraud lawyers to fight for you. Call us today for a free consultation.
FINRA Arbitration Explained
The Financial Industry Regulatory Authority is a non-governmental organization that oversees brokerage firms and exchange markets in the United States. Its primary mission is to protect investors by ensuring the securities industry operates fairly.
Our investment fraud lawyers have handled a wide range of FINRA arbitration cases, including:
- Fraud
- Misrepresentation
- Unauthorized trading
- Breach of fiduciary duty
- Failure to supervise
- Ponzi schemes
FINRA arbitration is a dispute resolution process that resolves conflicts between investors and brokerage firms or individual brokers without going to court. This process is often faster and less formal than traditional litigation.
In FINRA arbitration, a neutral third-party arbitrator or a panel of arbitrators reviews the evidence, listens to both sides and makes a binding decision on the dispute. The decisions are final and enforceable, providing a definitive resolution to the dispute.
Going through FINRA arbitration can quickly become overwhelming without professional legal representation. Working with our experienced Washington FINRA arbitration attorneys will simplify the process and increase the chances of a successful outcome.
Most Securities Fraud and Negligence Cases Are Resolved Through FINRA Arbitration
This arbitration process is often stipulated in the agreements you sign when opening brokerage accounts. When you sign, you typically waive their right to have any disputes resolved by a judge or jury, agreeing instead to settle conflicts through arbitration. Arbitration provides a structured yet flexible forum for addressing grievances without traditional court litigation.
Because arbitration is typically faster and less formal than going to court, it has become the primary avenue for resolving such disputes. Another main reason financial institutions prefer FINRA arbitration is the confidentiality it offers. These proceedings are private, and the only publicly disclosed document is the award amount.
Understanding the FINRA Arbitration Process
The arbitration process is governed by the FINRA Code of Arbitration Procedure, which delineates all the rules and procedures involved. The Code specifies the types of disputes that qualify for arbitration, such as issues related to fraud, misrepresentation, unauthorized trading, and breach of fiduciary duty.
It also outlines the timeline and steps for filing a claim, ensuring that both parties understand the process. Furthermore, the Code details the selection and responsibilities of arbitrators, the discovery process, and the hearing procedures, providing a comprehensive framework designed to facilitate a fair and efficient resolution of disputes.
Filing a Claim
When your FINRA arbitration attorney serving Washington files a statement of claim, the arbitration process officially starts. This document explains what happened and why you are seeking compensation. It serves as the first impression the arbitrators will have of your case.
Our Washington FINRA arbitration lawyers will make sure your statement is clear and precise. We want to give the arbitration panel a complete understanding of your situation and why you deserve compensation.
To begin the arbitration process, you will need to submit your statement of claim along with a filing fee. This is done online. After your claim is filed, the brokerage firm must respond within 45 days.
The Hearing
The amount of your claim influences the arbitration proceedings. One arbitrator usually decides claims under $100,000; in this case, the process is considered small claims. If your claim is under $50,000, the decision is usually based strictly on the written statement of claim and the brokerage firm’s response.
An arbitration hearing is conducted for claims over $50,000 or over $100,000. In this setting, witnesses provide testimony and present documents as evidence. In cases decided by an arbitration panel, a majority vote determines the outcome.
How long the arbitration process takes depends a lot on the unique details of your case. The entire arbitration process can take around one year, or even more, from the day you file your claim. Smaller claims involving a single arbitrator might be resolved in as little as one day, while larger claims can take three to five days and, in some cases, even weeks.
The Decision
The arbitrator’s or arbitration panel’s decision is binding and, with few exceptions, cannot be appealed. After reaching a decision, the arbitrators and FINRA administrative staff will prepare the award document.
The document prepared after the decision includes important information, such as:
- Identifying the involved parties
- Describing the claims and defenses presented
- Determining the prevailing party for each claim
- Specifying the amount to be awarded or ordering a dismissal of all claims
If Meyer Wilson wins your case, the brokerage firm must pay the money they owe you within 30 days. If they fail to pay within this period, your lawyer can request FINRA to suspend their brokerage license.
Call an Experienced Washington FINRA Arbitration Attorney Today
When seeking compensation for financial losses caused by fraud or negligence, having a knowledgeable lawyer on your side can be incredibly beneficial. At Meyer Wilson, our accomplished team has over 75 years of combined experience helping clients pursue compensation through FINRA arbitration.
Contact us today to arrange a complimentary consultation with one of our legal professionals. We’re here to help.