In the world of FINRA arbitration, the role of the chairperson goes far beyond just keeping time and moving things along. A skilled chairperson isn’t simply a manager — they are a leader, an organizer, and above all, a protector of the integrity and fairness of the process.
Whether you’re an experienced arbitrator or newly qualified to serve as chair, understanding the full scope of chairperson duties in FINRA arbitration is essential. Here’s a comprehensive look at what that role entails — and how to do it right.
Why the Chair Matters in FINRA Arbitration
At the heart of FINRA Dispute Resolution Services (DRS) is the mission to ensure that the securities industry operates fairly and honestly. The chairperson plays a pivotal role in upholding this mission. Appointed to lead the three-person panel, the chair not only presides over hearings but also sets the tone for how the case unfolds.
In securities arbitration, the chair’s leadership helps maintain a structured, respectful, and efficient process — especially important in high-stakes cases involving investor claims or intra-industry disputes.
Pre-Hearing Leadership: Setting the Stage
Chairperson duties begin before the first hearing ever takes place. One best practice is to send an introductory email to panelists before the initial prehearing conference (IPHC). This small step builds rapport and ensures everyone is prepared with their calendars and any relevant case materials.
Chairs should also coordinate on any pending motions prior to the IPHC, deciding whether they’ll be addressed during the conference or deferred. Including a short informal chat before the session can help humanize the virtual or in-person meeting and foster a collegial tone.
Creating a Culture of Professionalism and Neutrality
The chairperson is the first to speak and often the first to be looked at for guidance. That’s why demeanor matters. From the IPHC through the final deliberation, the chair must embody courtesy, patience, and judicial temperament.
This isn’t just about appearances — it’s critical to maintaining the neutrality expected in FINRA arbitration. Chairs must avoid facial expressions or tone that could imply bias and instead model inclusive and respectful engagement.
Managing the Panel as a Team Leader
While the chair guides the proceedings, they’re also one vote on a three-member panel. Building consensus starts with inclusivity. The chair should encourage executive sessions where all arbitrators can weigh in — especially on significant rulings or close calls.
This leadership style reassures parties that the arbitration panel functions as a unified team, not as a hierarchy. The chair should remind panelists early on that all decisions (except certain discovery rulings) are made by majority vote.
Making Rulings and Handling Objections Fairly
During FINRA arbitration hearings, the chair typically rules on objections to testimony and evidence. However, many key motions — like those involving dismissal or hearing postponements — require input from the full panel.
A savvy chair knows when to consult the panel and when to act decisively. Even when acting alone (e.g., in discovery conferences), the chair should report significant developments back to the panel to maintain transparency.
Running Effective Deliberations
Once testimony wraps, it’s time for the panel to deliberate. Best practice? Let the other arbitrators speak first. This encourages honest participation and prevents the chair’s opinion from unintentionally dominating the discussion.
The chair should guide the conversation respectfully, using phrases like, “What evidence supports that conclusion?” or “Can you walk us through that view?” These prompts help navigate disagreements productively and foster a true exchange of ideas.
Wrapping Up the FINRA Arbitration Process
Post-hearing, the chair completes and submits the award information sheet (AIS) and other hearing documents through the FINRA DR Portal. Sharing a draft with the panel before submission helps catch any inconsistencies and ensures accuracy.
The chair is also responsible for confirming that all paperwork — including exhibit lists and attendance forms — is accounted for and securely submitted. In both in-person and virtual hearings, timely form completion reflects the professionalism of the panel.
Final Thoughts: Leadership With Integrity 
Serving as a chair in FINRA arbitration is a privilege — and a responsibility. The chairperson ensures the process is fair, organized, and respectful for all participants. By fostering teamwork, remaining neutral, and staying organized, the chair not only leads the panel — they elevate the process.
With new arbitrators joining the roster regularly, strong leadership from the chair helps ensure that investor protection and fair resolution remain at the core of FINRA’s mission.
Bakhtiari & Harrison: Trusted Securities Attorneys for FINRA Arbitration
If you’re an investor who believes you’ve been wronged by a broker or financial advisor — or you’re navigating a dispute in the FINRA arbitration forum — you don’t have to face it alone.
At Bakhtiari & Harrison, we represent individuals nationwide in FINRA arbitration, with a proven track record of holding financial professionals and institutions accountable. Our attorneys understand the unique rules, procedures, and strategies that apply in these cases — because it’s our focus.
Whether your case involves investment fraud, unsuitable recommendations, broker misconduct, or negligence, we’ll help you seek justice and recover what you’ve lost. Contact Bakhtiari & Harrison today for a free, confidential consultation. Let us review your case, explain your rights, and fight for the recovery you deserve.