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.

Douglas County Nevada Investment Fraud Lawyer, Securities Attorney, FINRA Securities Law Firm

Helping Douglas County Nevada Clients with Financial Disputes

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

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

Douglas County Nevada Investment Fraud Lawyers

If you lost money due to investment fraud in Douglas County, 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.

Understanding Nevada Securities Code Violations in Trading Securities

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. This article will discuss common violations of the Nevada Securities Code, like suitability, unauthorized trading, misrepresentations, failure to disclose, and unfair business advantage. Douglas County Nevada investment fraud lawyers will assist you with 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.

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.

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. Douglas County Nevada investment fraud lawyers help to ensure 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.

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. Douglas County Nevada investment fraud lawyers investigate fraud claims for investors. 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

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. They must not do anything that could trick a client, like fraud or deceitful business practices. Douglas County Nevada investment fraud lawyers investigate and porsecute claims for investors. This law requires investment advisers to follow strict ethical standards to protect clients from fraud in their financial transactions.

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. Douglas County Nevada investment fraud lawyers know 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.

Douglas County Nevada Residents Contact Us

If you believe you have been a victim of investment fraud, reach out to Bakhtiari & Harrison. They offer a free consultation. 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. Douglas County Nevada investment fraud lawyers at Bakhtiari & Harrison will work tirelessly to help you recover your financial losses