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.

Investment Loss Attorneys: Your Path to Recovery

Investing can be one of the best ways to grow your wealth, but it doesn’t come without risks. Sometimes, investments don’t go as planned, and you might face unexpected losses. While some losses are simply the nature of investing, others can result from misconduct, negligence, or fraud. This is where investment loss attorneys step in to protect your rights and help you recover the money you deserve through a FINRA arbitration claim.

Investment Losses Can Be Recovered

Investment loss attorneys at Bakhtiari & Harrison, we understand how hard financial losses can be. This is especially true when they happen because of things you cannot control. Whether your loss is due to a broker’s misleading advice, unauthorized trading, or unsuitable investment recommendations, you have legal options to pursue. Let’s explore how working with investment loss attorneys can help guide you through this complex process.

Common Causes of Investment Losses

Investment losses may happen for many reasons, and not all are avoidable. However, if your loss resulted from negligence or improper conduct by your financial advisor, broker, or firm, you may be entitled to recover those losses. Common causes include:

Misrepresentation and Fraud: Brokers or advisors may sometimes misrepresent or conceal vital information about an investment. This can lead to financial harm when an investor makes decisions based on inaccurate or incomplete details.
Unsuitable Investments: Every investment should fit the investor’s financial goals and risk tolerance. If your broker pushes investments that don’t align with your financial situation, you could face unnecessary risks.
Unauthorized Trading: In many cases, brokers are required to get your permission before making trades. If they trade without your permission, it could cause serious financial harm. You might have a good claim to recover your losses, investment loss attorneys can assist in evaluating a claim.
Churning: Churning occurs when a broker makes excessive trades just to generate commissions. This unethical practice can deplete your investment account while earning the broker a higher profit.
Negligence: If your financial advisor doesn’t follow best practices, you could lose money. This money could have been saved if they had taken better care of your investments.

Understanding the root cause of your investment loss is essential to figuring out your next steps. An investment loss attorney can review your case. They will determine if your losses came from misconduct or other avoidable issues.

How Investment Loss Attorneys Can Help

When dealing with investment losses, the legal process can be complicated. Investment loss attorneys with experience in securities law, like those at Bakhtiari & Harrison, are here to help you with these issues. Here are a few ways they can help:

Case Assessment: An attorney will thoroughly review your situation, assess the evidence, and determine whether legal action is warranted. They can help you understand whether your loss resulted from fraudulent or negligent practices.
Filing Claims: Investment loss claims often require filing with regulatory agencies like FINRA (Financial Industry Regulatory Authority) or in civil courts. A lawyer can help you with this process. They will make sure you fill out all the required documents correctly and on time.
Negotiation and Settlement: In many cases, investment disputes are settled outside of court through negotiation. Attorneys can negotiate on your behalf to secure the best possible outcome.
Pursuing Legal Action: If necessary, an investment loss attorney will take your case to arbitration or court. They’ll advocate for your rights and pursue the recovery of your lost investments.

Why Choose Investment Loss Attorneys Bakhtiari & Harrison?

At Bakhtiari & Harrison, we know how frustrating and stressful it is to lose money. This often happens because of unfair or careless financial practices. Our legal team of investment loss attorneysis dedicated to helping investors like you recover their hard-earned money. We approach each case with care, investigating every detail and offering personalized attention to ensure the best path forward.

If you have lost money because of bad advice, unauthorized trades, or other wrongdoing, Bakhtiari & Harrison can help. They can assist you in taking legal action and getting compensation for your losses. We are here to stand by your side, every step of the way.

If you suspect that your financial loss may have been caused by misconduct or negligence, don’t wait to take action. The sooner you consult with an investment loss attorney, the better your chances of recovering your funds. Bakhtiari & Harrison is ready to review your case and discuss your legal options.

Reach out to us today to schedule a free consultation and start the process of recovering your lost investments. We are committed to helping you regain control of your financial future.