An Overview Of FINRA Arbitration Process For Securites Fruad Claims
Why FINRA Arbitration May Be Required
In most instances, investors must utilize FINRA arbitration for securities fraud disputes with brokers and/or their financial counsellors because of a contractual provision in their account agreement that demands that they resolve all disputes through a FINRA arbitration proceeding rather than a proceeding in federal or state court.
The FINRA Arbitration Process
Typically , four (4) separate and distinct phases are associated with the initiation and prosecution of a FINRA arbitration proceeding.
The 1st phase of a FINRA arbitration proceeding begins when a upset investor files a “Statement of Claim” with the offices of FINRA Dispute Resolution. A Statement of Claim contains the customer’s version of all topical facts related to the securities dispute, as well as a demand for relief, or damages, the investor would like to receive at the end of the FINRA arbitration process.
Once the Statement of Claim has been filed with the offices of FINRA Dispute Resolution, it is served by FINRA on the broker and/or financial advisors involved in the dispute. The firm and/or the counsellors are then required to file their “Statement of Answer,” which has their version of the pertinent facts and defenses connected with the securities dispute.
The second phase of a FINRA arbitration proceeding involves the choice of individuals who serve as arbitrators in the argument and who finally will render a final decision between the parties. Dependent on the quantity of damages involved in the securities dispute, the quantity of arbitrators can go from one (1) to three (3) people. All the parties in a FINRA arbitration proceeding have participation in the review process of the arbitrators, as well as the final selection of those people that will decide their securities dispute.
The 3rd part of a FINRA arbitration proceeding involves the exchange of documents and information between the parties on the circumstances and facts associated with the securities dispute.
The 4th and last section of a FINRA arbitration proceeding is the particular hearing of the securities dispute before a settlement panel. In an arbitration hearing, everyone involved in the securities dispute have entitlement to present their witnesses and documents supporting their own positions. In many respects, the hearing portion of a FINRA arbitration proceeding is comparable to a trial in a federal or state court proceeding.
The investment & securities fruad lawyers at Moulton & Arney, LLP have extensive experience representing individual investors in securities arbitration and litigation. Moulton & Arney have successfully represented thousands of individual speculators in instruments crime suits, investment crime and FINRA arbitrations, with mixed assertions of many millions of dollars.
You may be able to recover your money by talking about your individual loss with a professional investment fraud attorney. For first free confidential consultations with our FINRA arbitration lawyers are available by dialing (866) 378-4465.
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