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.

Carson City Nevada Investment Fraud Lawyer, Securities Attorney, FINRA Securities Law Firm

If you have problems with stock brokers, investment firms, or the securities industry, Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison can help you. We are a law firm that handles complex legal cases involving financial wrongdoing.

Carson City Nevada Investment Fraud Lawyers Assisting Clients with Financial Disputes

This includes arbitration and litigation. We help clients located in Carson City, Nevada. Our lawyers have a lot of experience dealing with securities, employment, and regulatory matters. We focus on providing creative and strategic solutions that meet our clients’ needs.

If you lost money due to investment fraud in Carson City, Nevada, Bakhtiari & Harrison can help you. We assist people and companies with securities disputes. This can be done either in court or through arbitration. Arbitration may involve organizations such as FINRA and AAA.

How We Can Help Carson City Nevada Residents, Understanding Nevada Securities Code Violations

Navigating the world of securities trading can be complex, especially in terms of compliance with the law. Nevada has set up strong legal guidelines to protect investors and maintain the honesty of its financial markets. Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison assist clients in financial disputes. This article will discuss common violations of the Nevada Securities Code, like suitability, unauthorized trading, misrepresentations, failure to disclose, and unfair business advantage. Let’s dive into the details to better understand how these laws work and why they’re important.

The Offer, Sale, and Purchase of Securities in Nevada

In Nevada, the law that governs the offer, sale, and purchase of securities is NRS 90.570. This statute makes it clear that fraud in any form is prohibited. For instance, it’s illegal to use any trick or scheme to defraud someone. Lying or omitting key facts that mislead others is illegal. Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison assist clients in financial disputes. Finally, we do not allow any business practice that defrauds or deceives someone. These rules are in place to keep securities transactions fair and protect investors from dishonest practices.

Duties and Fiduciary Responsibilities of Financial Professionals

NRS 90.575 explains the responsibilities that brokers, salespeople, financial advisors, and their staff have to their clients. Fiduciary duty is a legal obligation to act in the best interest of another party. Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison assist clients in financial disputes. In Nevada, these professionals must follow the fiduciary duties outlined in NRS 628A.020.

The Administrator can set rules for professionals and decide what actions break those rules to stop violations from happening. Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison assist clients in financial disputes. This ensures that financial professionals act in their clients’ best interests, safeguarding their financial well-being.

Market Manipulation under Nevada Securities Law

Market manipulation is a serious offense under NRS 90.580. This law, which builds on the principles in NRS 90.570, prohibits several specific types of deceitful activities. Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison assist clients in financial disputes. It is illegal to provide inaccurate prices for stocks or to make trades that do not truly transfer ownership of a stock. People do this to create the appearance of higher market activity than actually exists. You cannot place buy or sell orders if you intend to match them just to create the appearance of active trading.

Using tricks or spreading false information about stocks to manipulate the market is illegal. Actions following the Securities Exchange Act of 1934 and SEC rules are not subject to certain regulations. These regulations play a crucial role in ensuring transparency in the securities market and protecting investors from fraud.

Prohibited Securities and Fraudulent Activities in Nevada

NRS 90.590 is a statute that specifically addresses fraudulent activities by investment advisers and their representatives. It is illegal for these professionals to use any device or scheme to defraud a client. Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison assist clients in financial disputes. They must not do anything that could trick a client, like fraud or deceitful business practices. This law requires investment advisers to follow strict ethical standards to protect clients from fraud in their financial transactions.

Common Code Violations in Trading Securities

Several common violations under the Nevada Securities Code relate to trading securities. Here are some of them:

Churning happens when a broker trades too much in a client’s account to earn more commissions for themselves. This behavior violates fiduciary duties and can lead to significant losses for the client.
Front-running is when a broker trades a security for themselves using insider knowledge of their customers’ pending orders. This practice is illegal and undermines the fairness of the market.
Ponzi Schemes involve paying earlier investors with money from new investors, not from actual profits. Ponzi schemes are a form of fraud and are explicitly addressed by Nevada securities laws.
Insider trading happens when someone buys or sells a company’s stock. They do this using important information that the public does not know. Insider trading is illegal because it gives an unfair advantage and undermines trust in the financial markets. Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison assist clients in financial disputes.
Failure to Supervise: This violation occurs when supervisors fail to adequately oversee the actions of brokers. Lack of supervision can lead to various forms of misconduct, which are violations of Nevada securities laws.

Knowing Nevada’s securities laws helps investors and financial professionals manage the complicated world of securities trading more effectively. Adhering to these regulations is essential for maintaining trust, fairness, and transparency in the financial markets. Knowing the rules and laws that govern common violations can help you protect yourself and your clients. This ensures that everyone is following the law and maintaining high standards of honesty and fairness.

Carson City Residents Contact Us

If you believe you have been a victim contact Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison. They offer a free consultation with their securities fraud lawyers. We help clients throughout Nevada, including Carson City, Churchill County, Clark County, Douglas County, Elko County, Lyon County, Nye County, Washoe County and cities including Henderson, Las Vegas, Reno, Sparks. Our goal is to work tirelessly to help you recover your financial losses. Carson City Nevada investment fraud lawyers at Bakhtiari & Harrison assist clients in financial disputes.