What is FINRA arbitration? | Silver Law Group | Securities and Investment Fraud | Free Case Evaluation : (800) 975-4345 | 11780 W. Sample Road | Coral Springs, FL 33065




FINRA, the Financial Industry Regulatory Authority, is a quasi-government agency which regulates the brokerage industry. Although most customers don't appreciate it, when you open a brokerage account, whether it be with a large, national firm such as Morgan Stanley or Merrill Lynch, or a small, local brokerage firm, part of the customer agreement contains a FINRA arbitration clause, which requires you to waive your right to seek a trial by jury should you have a dispute with the brokerage firm, and to submit that dispute to FINRA arbitration. The FINRA arbitration process generally has several benefits to the investor, such as it being a faster, generally more expedious process than going to court, and can frequently be done much cheaper than a court case.
law firm has many years of experience representing investors in FINRA arbitration claims. Generally it is initiated by the filing of a statement of claim, similar to a complaint in court, and a response from the brokerage firm or an answer. After a period of discovery, where the parties are required to exchange a paper discovery, a panel of arbitrators will hear the dispute between the parties. Ultimately an award will come out, which is generally binding on the parties. One of the strongest benefits of the FINRA arbitration process is that the brokerage firm, if ordered to pay money, must satisfy that award within 30 days, unless they file a motion to vacate, which is very rarely done, and even tougher for the brokerage firms to prevail on.