FINRA Arbitration

What is FINRA Arbitration?

FINRA arbitration is a mandatory resolutions forum in the securities industry. In the financial industry, there is ample opportunity for wrongdoing on the part of a broker, due to the inherent tension between the desire and opportunity to make larger commissions by inappropriate use of the client’s account and the responsibility to always do what is best for the client. Professionalism usually wins out, and an ethical financial professional can make an excellent income while serving the needs of those whose investments he or she manages. But there are potential pitfalls, even for an honest broker. Markets are not always predictable, and returns on an investment can never be guaranteed. That there will be losses along the way is a given. A client who expected better results might shout “fraud” when a downturn in the market or an unfortunate bad call by a well-meaning broker causes a loss.

When disputes arise, clients have the right to make a legal claim for damages against the broker. Taking a case to the courts can be an extremely long, slow, and expensive process. A more efficient alternative is arbitration through FINRA, the Financial Industry Regulatory Authority, which was formed as a merger of the regulatory committee of the New York Stock Exchange and the National Association of Securities Dealers. FINRA oversees the activities of brokers, dealers, and investors.

What is Arbitration?

Arbitration is an alternative to using the court system to settle disputes. In a FINRA arbitration, parties to a dispute will present their cases to an impartial person, an arbitrator, who has completed FINRA’s arbitrator training program. Arbitration is much quicker and less expensive than a law suit, and the arbitrators, with specific training in dispute resolution, are often able to resolve difficult and complex disputes relatively quickly and effectively. FINRA arbitrators may be either public or non-public. Public arbitrators are not required to have specific knowledge of the securities industry, whereas non-public arbitrators have an extensive background in the industry. The parties to an arbitration are referred to as the claimant (you) and respondent (the broker you’re accusing). A FINRA arbitration is binding on all parties and generally precludes you from using the court system for the same issue later on.

For most investors, FINRA arbitration is the means by which any dispute with your broker, investment advisor, or the company they work for will need to be resolved, because most major brokerage firms now require their clients to sign a FINRA arbitration agreement when applying for a brokerage account. If you feel that you have been the victim of investment fraud or that your investment account has been mishandled, you will need to hire a securities lawyer to represent you and initiate the FINRA arbitration process. In Florida, attorney Todd A. Zuckerbrod is a top securities arbitration lawyer who has produced superior results for his clients in FINRA arbitrations.

The Arbitration Process

These are the steps to expect in the FINRA arbitration process:

This is a streamlined process that is often less time-consuming and stressful for you than using the courts. The attorney’s job is just as labor intensive and detailed as preparing a case for trial, so having a FINRA arbitration lawyer with many years of experience and a detailed knowledge of securities law and industry standards, along with access to credible expert witnesses such as forensic accountants, is essential.

Obtain a Skilled Legal Advocate for Your Florida FINRA Arbitration

When you have a complaint against a stockbroker or investment advisor, you will find the highly experienced legal representation you need by calling the law offices of FINRA regulator and securities attorney Todd A. Zuckerbrod in Boca Raton. Todd has over thirty years of experience in the industry and a record of achieving positive results for clients through the arbitration process, and is always up to date on securities regulations. He has relationships with the area’s most prestigious forensic accounting firms, who are available to provide expert testimony in support of your case. Call for a free consultation to learn more about the FINRA and investment arbitration process and how we can help. The sooner you call, the sooner you may be able to recover the money you have lost, so make the call today.