Frequently Asked Questions: Filing an Arbitration Claim with FINRA.

What is FINRA Arbitration?

Q: What is FINRA arbitration? A: FINRA arbitration is a dispute resolution process that allows parties to resolve securities-related disputes without going to court. It is typically faster and less formal than litigation.

Who Can File a Claim?

Q: Who can file an arbitration claim with FINRA? A: Investors, brokerage firms, and individual brokers can file arbitration claims with FINRA. Common disputes include issues like misrepresentation, unauthorized trading, and breach of fiduciary duty.

How Do I Start the Arbitration Process?

Q: How do I start the arbitration process with FINRA? A: To start the process, you need to file a Statement of Claim and a Submission Agreement with FINRA. The Statement of Claim outlines the nature of the dispute, the facts, and the relief sought.

What is a Statement of Claim?

Q: What information should be included in the Statement of Claim? A: The Statement of Claim should include the names of the parties involved, a detailed description of the dispute, the legal grounds for the claim, and the specific relief or damages you seek.

What is a Submission Agreement?

Q: What is a Submission Agreement? A: The Submission Agreement is a document where the parties agree to submit the dispute to FINRA arbitration and abide by the arbitration award.

How Do I File the Documents?

Q: How do I file the Statement of Claim and Submission Agreement? A: These documents can be filed electronically through FINRA’s Dispute Resolution Portal, or you can mail them to FINRA’s Dispute Resolution office.

What Fees Are Involved?

Q: What are the filing fees for a FINRA arbitration claim? A: The filing fees vary based on the amount of the claim. FINRA provides a fee schedule on its website to help you determine the applicable fee.

How Long Does the Arbitration Process Take?

Q: How long does the FINRA arbitration process take? A: The duration can vary, but most cases are resolved within 12-14 months. Complex cases may take longer.

Can I Represent Myself?

Q: Can I represent myself in a FINRA arbitration? A: Yes, you can represent yourself, but given the complexities of securities laws and arbitration rules, many choose to hire an attorney.

What Happens After Filing?

Q: What happens after I file my arbitration claim? A: After filing, the opposing party will have an opportunity to respond. The case will then move to the discovery phase, where both parties exchange relevant information. An arbitration hearing will be scheduled subsequently.

What is an Arbitration Hearing?

Q: What happens at an arbitration hearing? A: At the hearing, both parties present their case to a panel of arbitrators. This includes presenting evidence, witness testimony, and arguments. The arbitrators then make a decision, which is binding.

How is the Arbitration Award Enforced?

Q: How is the arbitration award enforced? A: The arbitration award is final and binding. If a party does not comply with the award, the prevailing party can seek to have the award confirmed by a court, making it enforceable like a court judgment.

Where Can I Find More Information?

Q: Where can I find more information on filing an arbitration claim with FINRA? A: More detailed information and resources can be found on FINRA’s official website under the Dispute Resolution section.