How Are FINRA Disputes Resolved? 

Investors go to brokers or brokerage firms when they want their investments to be taken care of properly. Brokers are knowledgeable about buying and selling practices on the stock market, and they are responsible for making sure that investors’ purchases and sales go smoothly. Unfortunately, there are instances where brokers do not always have investors’ best interest at heart. The Financial Industry Regulatory Authority, or FINRA, conducts investigations of disputes between investors and brokers. 

What Are Common Types of Disputes? 

FINRA disputes include a range of matters. Sometimes brokerage firms are not honest about their policies or practices, misleading investors about how they conduct their business. No matter what kind of misconduct your broker has committed, you can depend on a FINRA lawyer to assist you with the complex matter. Some of the most common claims at the center of arbitration include:

  • Investment loss claims. A FINRA lawyer like one from Crepeau Mourges can support you in recovering any losses you have experienced. 
  • Investment schemes or misconduct. If your broker engages in an investment scheme or other unlawful activity, a lawyer can give you the legal assistance so that action is taken against them. 
  • Violations of FINRA rules or regulations. For all other violations of FINRA rules, a lawyer can help you build the best case possible against the party.  

What Should I Expect During Arbitration? 

Generally investors who work with brokers sign an agreement informing them that they waive their right to go to court, and instead must resolve disputes through forced arbitrations presided over by FINRA. Arbitration is typically a much faster and streamlined process than going to court. There are several notable differences, such as the absence of a judge and jury. FINRA chooses a panel who hears the argument of each side. They then determine what actions should be taken, and which party is deserving of compensation. A financial settlement or award, is distributed to the party and the matter is settled. 

While arbitration is a much simpler process, the speed at which decisions are made does leave unanswered questions in some cases. Having a FINRA lawyer to guide you through arbitration is highly recommended so that you can obtain further explanation about the proceedings when necessary. They can answer your questions, refer to expert witnesses, and help ensure that the arbitration proceedings are done properly. 

Request a Consultation

Contact an experienced FINRA lawyer today if you need more information regarding the arbitration process or need help settling a dispute.