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What to expect in a FINRA Arbitration?

By Sean Sweeney on October 07, 2014

us_finra.jpgMost broker dealers include mandatory FINRA arbitration as a part of their customer new account forms. This means that if you have a dispute with your broker, or the company he works for (broker-dealer), you have likely given up your right to pursue those claims in court. Instead disputes are resolved through a panel of one or three arbitrators (depending on the size of the claim) administered by FINRA according to its rules of arbitration.

The FINRA Arbitraiton process differs from a court case in a few key ways:

  1. Rather than a judge and jury, a panel of three arbitrators decides the case.This carries with it the lack of any meaningful review or appeal process.
  2. Discovery is extremely limited. The parties are limited to document requests as the means for determining the facts for the final hearing. Requests to admit, interrogatories, and depositions, a mainstay of court litigation, are prohibited (with a few exceptions).
  3. The rules of evidence at trial (or final hearing) are applied differently than court and sometimes ignored in a FINRA arbitration.
This series of posts will walk through each of the parts of the FINRA arbitration process: If you have a dispute with your broker, give us a call to help you with your FINRA arbitration at 414-271-3400 or e-mail Sean M. Sweeney at sms@hallingcayo.com

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At The Securities Lawyers, you get hands-on involvement from a partner level attorney. If I'm on your case, there will be associates and paralegals assisting, but I will be the one trying your case, negotiating settlements, and mediating your case. Sean M. Sweeney

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Milwaukee Office

320 E Buffalo St
Ste 611
Milwaukee, WI 53202

Open Today 8:00am - 5:00pm

Open Saturday and Sunday for calls and emails.

More Info Directions (414) 755-5020