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.

Nationwide Arbitration Securities Lawyers | Bakhtiari & Harrison

Lost Money to Your Broker? Arbitration Securities Can Get It Back

Table of Contents

When Your Broker Betrays Your Trust

Imagine you’ve spent years building your savings—perhaps for retirement, a child’s future, or a long-dreamed-of goal. You placed that money in the hands of a stockbroker or broker-dealer, expecting them to grow it wisely. You pictured a secure future. Then, everything changed. Your investments tanked. The losses mounted, and your broker’s excuses didn’t hold water. Maybe they steered you into risky ventures, traded excessively to boost their own fees, or misled you about what you were buying. Now, you’re staring at a diminished account and wondering how it went so wrong.

This isn’t a rare story. Countless investors nationwide experience this gut punch when the professionals they trust let them down. It’s not always just a bad market—sometimes, it’s misconduct, negligence, or even fraud by stockbrokers and broker-dealers. The question is: what now? You want your money back, but the legal system feels intimidating, costly, and slow. At Bakhtiari & Harrison, we understand your frustration, and we’re here to help you navigate this mess with a powerful solution: arbitration securities.

How Misconduct Drains Your Investments

The culprits are varied—stockbrokers pushing investments that don’t fit your goals, broker-dealers failing to oversee their staff, or advisors putting their profits ahead of your needs. These aren’t simple errors; they’re breaches that can wipe out your financial stability. Perhaps your broker churned your account, racking up commissions with unnecessary trades. Maybe they sold you complicated products—like non-traded REITs or variable annuities—without disclosing the downsides. Or they concealed losses, banking on your ignorance.

The result? You’re out real money. Beyond that, there’s the sting of betrayal and the sinking feeling of being stuck. It’s unfair—you shouldn’t pay the price for someone else’s actions. Those losses could unravel your plans without a response, forcing you to start over. But you don’t have to accept that outcome.

Why Choose Bakhtiari & Harrison?

That’s where we come in. At Bakhtiari & Harrison, we’re more than just lawyers—we’re your partners in this fight. As seasoned arbitration securities lawyers and FINRA attorneys, we’ve dedicated decades to helping investors recover from investment fraud and broker misconduct. Our track record proves it: we’ve handled thousands of securities arbitration cases and secured over $250 million for clients nationwide. We’ve taken on giant brokerage firms, tackled complex disputes, and come out on top.

What sets us apart? Our focus on arbitration securities—a quicker, smarter alternative to drawn-out lawsuits. As FINRA attorneys, we guide you through the Financial Industry Regulatory Authority’s arbitration process, simplifying what could otherwise be overwhelming. We get the toll these losses take—financially and emotionally—and we’re here to lighten that load with clear, actionable support.

Your Path to Recovery with Arbitration Securities

So, how do we get your money back? It starts with a straightforward three-step approach centered on arbitration securities:

Step 1: Digging into the Details

We begin by investigating your situation. Our investment fraud lawyers pore over your account statements, trade records, and broker communications, hunting for signs of trouble—unsuitable investments, unauthorized trades, misrepresentations, or inflated fees. If your broker-dealer drops the ball on supervision, we’ll also spot that. This is thorough, evidence-based work to build a strong case.

Step 2: Launching Your FINRA Claim

Next, we file a claim with FINRA, which regulates brokerage firms and settles investor disputes. Arbitration securities through FINRA moves faster than courtroom battles—you won’t be stuck in limbo for years. We craft a detailed argument showing how your broker or broker-dealer broke the rules, then pick arbitrators to hear your case fairly.

Step 3: Securing What’s Yours

At the hearing, we bring your case to life with hard-hitting advocacy. We present evidence, call witnesses, and explain why you’re owed compensation. Our FINRA attorneys know the system inside out—the arbitrators, the rules, the winning moves. Whether it ends in a hearing or a settlement, we aim to maximize your recovery. FINRA awards are final, and firms have to pay up or face serious consequences.

This isn’t a theory—it’s a method we’ve used to win for clients from California to New York. Arbitration securities gives you a fair shot at justice without the endless delays.

The Cost of Doing Nothing

What if you wait? The losses linger. Your broker might evade responsibility, and the firm could bury the issue. Time matters—FINRA Rule 12206 sets a six-year limit from the event that caused your loss to file a claim. Miss that deadline, and your options vanish. Beyond that, the stress of financial setbacks and broken trust can wear you down.

We’ve seen investors hold off, hoping the market bounces back or their broker fixes things, only to find neither happens. Delay plays into the hands of those who wronged you. With Bakhtiari & Harrison as your FINRA attorney, we flip that script, turning hesitation into decisive action.

What Winning Looks Like

Now imagine this: Your arbitration securities case succeeds. The award arrives, and the brokerage firm pays up—covering your losses, possibly with extra interest or penalties. You’re not just breaking even; you’re moving forward with the means to rebuild. The burden eases. You regain confidence, knowing you held them accountable and took charge of your finances.

This is real—we’ve made it happen. From a recent FINRA win against a wirehouse to millions recovered in settlements, we deliver results. As your investment fraud lawyers, we’re fighting for more than dollars—we’re fighting for your peace of mind, wherever you are, from Los Angeles to Atlanta.

Why Arbitration Securities Outshines Court

You might ask: Why not go to court? Lawsuits have their place, but most investors are bound by arbitration agreements with their brokerage firms. In any event, arbitration securities could be better. Here’s why:

Speed: FINRA arbitration often resolves in 9-18 months, not the years a court case might take.
Cost: It trims legal fees and expenses, keeping justice within reach.
Knowledge: FINRA arbitrators may be more familiar with securities than some judges or juries.
Closure: Awards stick, with few appeals, so you move on sooner.

As arbitration securities lawyers, we’ve honed this process. We know its ins and outs, making FINRA our strongest arena—not a courtroom fallback.

Who We Stand For

We represent all kinds of investors—retirees hit by risky bets, professionals stung by churning, and institutions misled by broker-dealers. If broker misconduct costs you money, we’re your FINRA attorney. We’ve worked coast to coast on cases like:

Unsuitable investments
Churning and excessive trading
Misrepresentation or omission
Unauthorized trades
Broker-dealer negligence

No matter the size—$50,000 or $5 million—our investment fraud lawyers customize a plan for you.

Take the First Step Today

You’re here because you’re ready to act. Don’t let this drag on. Reach out to Bakhtiari & Harrison for a free consultation. We’ll assess your case, lay out your options, and map the road ahead with arbitration securities.

It’s straightforward:

Contact us—we’ll hear you out.
We investigate—leaving nothing unchecked.
We push forward—until you’re made whole.

As your FINRA attorney and investment fraud lawyers, we’re committed to turning your setback into a comeback. Time’s ticking, but your story doesn’t end here. Let’s make it right.