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.

How to Choose a Securities and Commodities Fraud Attorney

Navigating the world of securities and commodities fraud can be daunting. You may feel overwhelmed by complex legal terms and procedures. But you’re not alone. A securities fraud attorney can be your guide.

They can help protect your rights and recover your losses. Yet, choosing the right attorney is crucial. This article will help you choose a good securities fraud attorney. Whether you’re a victim of securities or commodities fraud or an investor seeking legal advice, this guide is for you.

Understanding Securities and Commodities Fraud

Before we delve into choosing a securities and commodities fraud attorney, it’s important to understand what securities fraud entails. Securities and commodities fraud is a deceptive practice in the stock or commodities markets. It involves inducing investors to make purchase or sale decisions based on false information. This often results in losses, violating the securities laws.

Securities fraud can take many forms. However, at its core, it involves untrue information investors use to make decisions. A serious crime with severe penalties, including hefty fines and imprisonment.

The Role of a Securities and Commodities Fraud Attorney

A securities and commodities fraud attorney plays a crucial role in protecting investors’ rights. They focus on laws and regulations related to securities fraud. Their primary responsibility is to represent clients who have been victims of securities fraud. They help clients recover their losses and hold the fraudulent parties accountable.

Securities law is a complex field with its own set of rules and regulations. An experienced attorney has the necessary knowledge and experience to navigate this intricate legal landscape. They can provide the best possible representation and increase your chances of a favorable outcome.

General lawyers can handle many legal issues, but they may not have the expertise needed for securities fraud cases. Fraud lawyers know a lot about securities law and the financial industry. This specialized knowledge is crucial in building a strong case and effectively representing clients in securities fraud cases.

Qualifications of a Top Securities and Commodities Fraud Attorney

When choosing a securities fraud attorney, it’s important to consider their qualifications. A top attorney in this field should have a strong background in securities law. They should also have a proven track record of successfully representing clients in securities fraud cases. Here are some key qualifications to look for:

Extensive experience in securities law
A successful track record in securities fraud cases
In-depth knowledge of current securities regulations
Strong negotiation skills
Excellent communication and client service

Experience is a crucial factor when choosing a securities fraud attorney. An attorney with years of experience in securities law will have a deep understanding of the complexities of these cases. Their past performance can show how well they have helped clients with securities fraud cases.

Securities law is constantly evolving, with new regulations being introduced regularly. A top securities fraud attorney should stay updated with these changes to provide the best representation for their clients. Their knowledge of current regulations can greatly impact the outcome of your case.

Evaluating a Securities and Commodities Fraud Attorney

Once you’ve identified potential attorneys, the next step is to evaluate them. This involves assessing their qualifications, communication style, and approach to your case. Here are some key factors to consider when evaluating a securities fraud attorney:

Their approach to client communication and availability
Their strategy for your specific case
Their success rate in litigation and arbitration
Their knowledge of current securities regulations and trends

The initial consultation is a crucial part of the evaluation process. This is your opportunity to ask questions and get a feel for the attorney’s approach to your case. Ask about their experience with cases similar to yours, their success rate, and their strategy for your case.

Communication is key in any attorney-client relationship. A good securities fraud attorney should be able to explain complex legal concepts in plain language. They should also be proactive in keeping you informed about the progress of your case.

Why Bakhtiari & Harrison?

Choosing a securities and commodities fraud attorney is a significant decision. It requires careful consideration of the attorney’s qualifications, experience, and approach. It’s important to feel comfortable with the attorney and confident in their ability to represent your interests.

While qualifications and experience are important, personal fit is also crucial. You should feel comfortable discussing your case with your attorney and confident in their ability to represent you. Choose a stock lawyer or stock attorney you trust and feel comfortable with, as you will be working closely with them. Making a good choice is important.

Choosing the right securities fraud attorney is a crucial step in your legal journey. With the right guidance, you can navigate the complexities of securities law and work towards a favorable outcome through FINRA arbitration. Remember, the goal is to empower yourself with knowledge and make an informed decision. Contact us at Bakhtiari & Harrison.