What is FINRA arbitration?

FINRA arbitration is a method of resolving disputes between investors and brokerage firms or financial advisors outside the court system. It involves a neutral third party, an arbitrator, who reviews the case and makes a binding decision.

Why choose arbitration over litigation?

Arbitration is typically faster, less formal, and more cost-effective than litigation. It also provides a final resolution to disputes, with limited grounds for appeal. Most relationships with financial advisors are formalized by entering into a contract which contains a dispute resolution clause. Nationally, most dispute resolution clauses provide for FINRA arbitration.

Who can file a FINRA arbitration claim?

Investors, brokerage firms, and financial advisors can file a FINRA arbitration claim if they have a dispute related to securities or investment activities. FINRA arbitration is normally the forum for disputes among registered persons, brokerage firms and the public customer clients of the firms.

How do I start the FINRA arbitration process?

To start the arbitration process, Bakhtiari & Harrison will file a Statement of Claim with FINRA, detailing the nature of the dispute, the parties involved, and the relief sought.

What is a Statement of Claim?

A Statement of Claim is a written document submitted by the claimant outlining the facts of the dispute, legal claims, and the desired outcome.

What happens after filing the Statement of Claim?

After filing, the respondent has 45 days to answer the Statement of Claim. The answer must address the claims and may include counterclaims or other relief sought.

What fees are involved in FINRA arbitration?

Fees include filing fees, hearing session fees, and possibly member surcharges or process fees, depending on the specifics of the case.

Can I represent myself in FINRA arbitration?

Yes, you can represent yourself, but many choose to hire an attorney with experience in securities arbitration due to the complexity of the process. Investors and industry professionals who choose to represent themselves do so at a substantial disadvantage, Wall Street firms typically retain experienced professional counsel to represent their interests.

How are arbitrators selected?

Arbitrators are selected through the Neutral List Selection System (NLSS), which provides a list of potential arbitrators. Both parties rank and strike names to agree on a panel.

What qualifications do FINRA arbitrators have?

FINRA arbitrators include attorneys, accountants, financial professionals, and public members who have undergone training and meet FINRA’s qualification standards.

How long does the arbitration process take?

The process typically takes 12-18 months from filing to the final award, but this can vary based on case complexity and scheduling. Preference may be given to investors that are seriously ill or elderly.

What is a prehearing conference?

A prehearing conference is a meeting between the parties and the arbitrators to discuss procedural issues, set a schedule, and address preliminary matters including final FINRA arbitration hearing dates.

What is discovery in arbitration?

Discovery is the exchange of documents and information between the parties to prepare for the hearing. It is more limited than in litigation.

What happens during the arbitration hearing?

During the hearing, both sides present evidence, call witnesses, and make arguments. The arbitrators then deliberate and render a decision.

Is the arbitration hearing open to the public?

No, arbitration hearings are private and confidential. Only the parties, their representatives, and the arbitrators may attend.

Can I settle my case before the hearing?

Yes, parties can settle at any time before the arbitrators render a decision, often through negotiation or mediation.

What is mediation in the context of FINRA arbitration?

Mediation is a voluntary process where a neutral mediator helps the parties negotiate a settlement. It is separate from arbitration and non-binding.

What happens if I lose in arbitration?

If you lose, the arbitrator’s decision is final and binding. There are limited grounds for challenging the award in court.

Can I appeal an arbitration decision?

Generally, you cannot appeal an arbitration decision. However, you can seek to vacate the award on very narrow grounds, such as arbitrator misconduct.

What types of disputes are resolved through FINRA arbitration?

Disputes include claims of fraud, breach of fiduciary duty, negligence, breach of contract, and other issues related to securities and investments.

How are damages determined in arbitration?

Damages are determined based on the evidence presented, including financial records, expert testimony, and the specifics of the case.

Can arbitrators award attorney’s fees?

Arbitrators can award attorney’s fees if provided for by law, contract, or if both parties request it.

How do I enforce an arbitration award?

An arbitration award can be enforced in court through a confirmation process, making it a judgment that can be collected.

What is expungement in FINRA arbitration?

Expungement is the process of removing information from a broker’s record on the Central Registration Depository (CRD) system. It is only granted under specific conditions.

What are the grounds for vacating an arbitration award?

Grounds for vacating an award include arbitrator bias, fraud, corruption, or misconduct, as well as exceeding their powers.

Are arbitration awards public?

Yes, arbitration awards are published on FINRA’s website, providing transparency and access to past decisions.

What is the role of the Office of Dispute Resolution?

The Office of Dispute Resolution administers arbitration and mediation cases, ensuring that the process runs smoothly and efficiently.

What is a Simplified Arbitration?

Simplified Arbitration is for cases involving claims of $50,000 or less, allowing for a quicker and less expensive resolution without a hearing.

Can I request an expedited hearing?

Yes, in certain circumstances, such as elderly or seriously ill parties, you can request an expedited hearing.

What is the role of an arbitrator?

An arbitrator acts as a neutral decision-maker, reviewing evidence, hearing testimony, and issuing a binding decision on the dispute.

How do I prepare for an arbitration hearing?

Preparation involves gathering evidence, preparing witnesses, and developing a clear case strategy to present to the arbitrators.

What types of evidence are admissible in arbitration?

Evidence can include documents, emails, financial records, expert reports, and witness testimony, subject to the arbitrators’ discretion.

Can I request documents from the other party?

Yes, through the discovery process, you can request relevant documents and information from the other party to support your case.

How does FINRA handle conflicts of interest with arbitrators?

FINRA requires arbitrators to disclose any potential conflicts of interest, and parties can object to arbitrators they believe are biased.

What happens if a party does not comply with discovery?

If a party does not comply, the other party can file a motion to compel, asking the arbitrators to order compliance and possibly impose sanctions.

What is a motion in arbitration?

A motion is a formal request for the arbitrators to make a ruling on a specific issue, such as compelling discovery or dismissing a claim.

Can I request interim relief in arbitration?

Yes, you can request interim relief, such as temporary restraining orders or injunctions, to preserve the status quo pending the final decision.

How are hearing locations determined?

Hearing locations are typically determined by the location of the claimant unless both parties agree to a different venue.

What is a telephonic or virtual hearing?

Telephonic or virtual hearings are conducted via phone or video conference, allowing parties to participate remotely.

How are arbitration awards paid?

Awards are typically paid by the losing party within 30 days of the decision, unless otherwise specified by the arbitrators.

What if the losing party does not pay the award?

If the losing party does not pay, you can seek enforcement through the courts, turning the award into a legally enforceable judgment.

Are there any limits on the types of claims I can bring in arbitration?

FINRA arbitration covers a broad range of claims related to securities, but there are some statutory and regulatory limits on certain types of claims.

Can I bring a class action in FINRA arbitration?

No, class actions are not permitted in FINRA arbitration. However, you can join other claimants in a single arbitration if the claims are similar.

What is the role of expert witnesses in arbitration?

Expert witnesses can provide specialized knowledge and opinions to help explain complex financial issues to the arbitrators.

How are hearing dates scheduled?

Hearing dates are scheduled based on availability of the parties and arbitrators, with consideration for the complexity of the case.

Can I request a different arbitrator if I believe one is biased?

Yes, you can challenge an arbitrator if you believe they have a conflict of interest or bias that affects their impartiality.

What is a “chairperson” in a FINRA arbitration panel?

The chairperson is the lead arbitrator who manages the procedural aspects of the case and ensures the hearing runs smoothly.

How does FINRA ensure fairness in arbitration?

FINRA has rules and procedures in place to ensure a fair and impartial process, including arbitrator training and disclosure requirements.

How do I learn more about the FINRA arbitration process?

For more information, you can visit FINRA’s website, contact their Office of Dispute Resolution, or consult with experienced attorneys like those at Bakhtiari & Harrison.

How can Bakhtiari & Harrison help with FINRA arbitration?

Bakhtiari & Harrison can assist with filing claims, responding, selecting arbitrators, discovery, hearings, and ensuring the best possible outcome through skilled representation and strategic advice.

Why High Net-Worth Individuals Choose Bakhtiari & Harrison: The Importance of Hiring Experienced Securities Attorneys

Wealthy individuals who experience stockbroker fraud encounter difficult financial problems that can lead to serious long-term effects. Recovering from such situations requires legal action and a strategic, comprehensive approach that only experienced securities attorneys can provide. Bakhtiari & Harrison is an optino for high-net worth investors. We help protect investments and deal with securities fraud issues.

Unparalleled Expertise in Securities Law

Bakhtiari & Harrison is recognized as a securities arbitration and litigation leader, boasting over 50 years of collective experience. This extensive experience allows the firm to handle even the most complicated cases confidently and precisely. Each lawyer at Bakhtiari & Harrison has experience leading important arbitration hearings. As a result, they are well-versed in securities law and the arbitration process.

One of the firm’s landmark cases involved securing a $54 million award for an investor, including $17 million in punitive damages. This case, which involved significant losses from a failed leveraged municipal arbitrage fund, stands as the most important award ever levied against a major Wall Street brokerage on behalf of individual investors. This success exemplifies the firm’s ability to secure substantial victories even in the most challenging circumstances.

Comprehensive Legal Services for Complex Needs

High net-worth individuals often require more than just essential legal representation. Their financial portfolios involve various assets, investments, and legal structures. Bakhtiari & Harrison offers a comprehensive suite of services designed to address the full spectrum of legal needs that arise from securities fraud and related issues. These services include:

Case Evaluation: Bakhtiari & Harrison begin by thoroughly evaluating each potential fraud case. This process involves reviewing all relevant documents, transactions, and communications to determine the case’s merits. This ensures that clients pursue legal action with a strong, evidence-based foundation.
Litigation and Arbitration: The firm’s attorneys represent clients in both state and federal courts and in FINRA arbitration. Their dual expertise in litigation and arbitration allows them to choose the most effective route for each case. Arbitration is a quicker and cheaper way to settle disagreements, and our company is experienced in this area.
Regulatory Compliance and Advisory: Bakhtiari & Harrison also guide regulatory compliance. High net-worth clients often have complex financial arrangements that must comply with many regulations. The firm’s attorneys help clients navigate these regulations, preventing future disputes and potential sanctions.
Negotiation and Settlement: While litigation and arbitration are sometimes necessary, Bakhtiari & Harrison excel in negotiation. The firm’s lawyers are good at reaching fair settlements for investors’ losses, avoiding long and costly legal disputes. Negotiation helps clients resolve cases quickly and quietly, achieving favorable outcomes. This skill is valuable for those seeking efficient solutions.

The Bakhtiari & Harrison Difference

What truly sets Bakhtiari & Harrison apart is our unwavering commitment to providing personalized, client-focused service. We understand that for high net-worth individuals, the consequences of securities fraud go beyond financial losses. The emotional toll and potential damage to reputation can be just as severe, if not more so. Our lawyers consider all aspects of a case, including legal issues and our clients’ personal and reputation worries.

The firm’s commitment to client success reflects its consistent track record of favorable outcomes. Whether through litigation, arbitration, or negotiation, Bakhtiari & Harrison have repeatedly demonstrated their ability to secure significant recoveries for clients wronged by unethical financial practices.

They have a strong understanding of finance. This helps them predict and counter the strategies of opposing lawyers. As a result, their clients gain a significant advantage in legal cases.

Innovative Legal Strategies

Our firm is known for its ability to craft innovative legal strategies. Our lawyers always seek new and innovative ways to help our clients. They don’t just rely on traditional methods. They strive to find the best results for our clients. We think creatively.

This has led to major successes. It has also made us one of the strongest legal teams in the securities industry.

Bakhtiari & Harrison’s lawyers collaborate with financial experts to understand complex financial products and transactions in their cases. Working together helps them create compelling arguments supported by evidence that can withstand examination in arbitration or court. The lawyers at the firm keep up with new laws and rules about money and investments. They are always ready to handle any new problems that come up.

Leadership and Influence in the Securities Law Community

Bakhtiari & Harrison’s influence extends beyond the courtroom. The lawyers at the firm have helped create the rules for securities arbitration and litigation.

One partner was the President of the Public Investor Arbitration Bar Association (PIABA). This is the only national group for lawyers who work on securities arbitration and litigation. A partner led the FINRA NAMC, an SEC-approved board position.

These roles have given the firm important knowledge about securities arbitration. They have also allowed the firm to create rules and policies that protect investors. This leadership in the legal community helps the firm better represent clients by understanding regulations and new legal changes.

Success Stories that Demonstrate Excellence

Bakhtiari & Harrison’s success is not theoretical; they demonstrate it through real-world results. The company has helped clients recover money in many cases. These cases include simple fraud and complicated financial disputes. These stories show how the firm can help clients get justice, even in difficult cases.

Bakhtiari & Harrison helped investors who were tricked by a broker running a Ponzi scheme. The firm’s attorneys gathered evidence, including financial records and expert testimony, to build a compelling case. Their hard work led to a strong economic recovery, helping investors regain a large part of their lost money.

Another success story involved a financial advisor whom their firm had wrongfully terminated. Bakhtiari & Harrison took on the case and thoroughly investigated the circumstances surrounding the termination.

The lawyers proved that the advisor followed the rules and policies. This led to a positive decision. The advisor was permitted to work again as a result. This win saved the advisor’s job and showed how crucial it is to have a skilled lawyer on your side.

The Importance of Choosing the Right Securities Attorney

Wealthy individuals need to pick a securities attorney carefully if they are dealing with stockbroker fraud. This choice is very important. The complexities of securities law and the high stakes involved make it essential to have experienced legal representation. Bakhtiari & Harrison provides expert, dedicated, and personalized service to help wealthy clients safeguard their investments and recover from fraud.

The lawyers at the firm know that each client is different. They customize their legal plans to fit the specific needs of each person. This personalized approach ensures clients receive the attention and support they need throughout the legal process. Bakhtiari & Harrison work hard from the first meeting to the end of the case to get the best results for their clients.

Why Bakhtiari & Harrison is the Right Choice

Bakhtiari & Harrison is a leading securities law firm known for its dedication and hard work. For many years, it has been committed to seeking justice for its clients. The firm’s lawyers have extensive experience, strong knowledge of finance, and a dedication to providing exceptional legal services.

Bakhtiari & Harrison provide legal help for wealthy people cheated by stockbrokers. They focus on trust, honesty, and working together to seek justice.

The firm’s lawyers are ready to help their clients. They provide advice and support at every stage. This assistance is essential for handling legal challenges.

Act to Protect Your Future

If you are wealthy and a stockbroker has cheated you, it is crucial to hire a skilled securities lawyer. Securities law is complex, and fraud can lead to significant financial losses. It’s important to have a good legal team to help you. Bakhtiari & Harrison has the expertise, experience, and commitment to help you recover your losses and protect your financial future.

Don’t leave your future to chance. Contact Bakhtiari & Harrison today to discuss your case and take the first step toward securing the justice you deserve. Our lawyers are ready to help you with securities law. They can guide you through the legal process and help you get a good result.

With Bakhtiari & Harrison by your side, you can confidently move forward, knowing that your case is in the hands of some of the field’s most experienced and dedicated securities attorneys.