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.

Securities Lawyers in LA County | Bakhtiari & Harrison

Securities fraud refers to deceptive practices in the financial and investment sectors that result in financial harm to investors. These schemes often involve misrepresentation, false information, or outright theft. Common types of securities fraud include:

Ponzi and Pyramid Schemes: Fraudsters promise high returns to new investors, using funds from later investors to pay earlier ones until the scheme collapses.
Insider Trading: Illegally trading stocks based on non-public information.
Misrepresentation of Investment Risks: Providing false or incomplete information about an investment’s potential risks and rewards.
Unauthorized or Excessive Trading: Brokers making transactions without a client’s consent or executing trades that serve their interests over the investor’s.
Breach of Fiduciary Duty: Financial advisors acting against their clients’ best interests for personal gain.

Victims of securities fraud can face devastating financial consequences. Recovering from these losses often requires a strong legal strategy and experienced representation. Securities lawyers in LA County at Bakhtiari & Harrison represent investors in disputes with the securities industry.

Why Choose Bakhtiari & Harrison as Your Securities Lawyers in LA County?

When seeking justice in a securities fraud case, your choice of legal representation matters. Securities lawyers in LA County at Bakhtiari & Harrison bring unparalleled expertise and a commitment to client success, making them a top choice for those facing financial harm.

1. Deep Expertise in Securities Law

Bakhtiari & Harrison’s legal team specializes in securities litigation and arbitration. Their extensive experience includes handling cases involving fraudulent investment schemes, broker misconduct, and regulatory violations. They have a thorough understanding of federal and California financial regulations, ensuring that every legal avenue is explored to recover your losses.

2. Tailored Legal Strategies

No two securities fraud cases are the same, which is why Bakhtiari & Harrison take a personalized approach to each client. They conduct comprehensive investigations, delving into the specifics of the case to build a strong and customized legal strategy. This attention to detail ensures that no aspect of your case is overlooked.

3. Relentless Advocacy

Investment fraud often leaves victims feeling powerless and financially vulnerable. Bakhtiari & Harrison are relentless in their pursuit of justice for their clients. Whether through negotiation, arbitration, or courtroom litigation, they fight tirelessly to recover lost assets and hold responsible parties accountable.

4. Client-Centered Service

Securities lawyers in LA County at Bakhtiari & Harrison understand that navigating a securities fraud case can be an overwhelming experience. That’s why they prioritize open communication and transparency throughout the legal process. They take the time to explain your options, keep you informed, and provide empathetic support as you work together to achieve the best possible outcome.

Common Scenarios Where Securities Lawyers Can Help

Securities fraud can occur in many ways, but Bakhtiari & Harrison have the expertise to address a wide range of scenarios, including:

Fraudulent investment schemes involving stocks, bonds, or cryptocurrencies.
Cases of broker misconduct, such as unauthorized trading or churning.
Situations involving misleading prospectuses or falsified financial statements.
Claims against financial advisors who fail to disclose conflicts of interest or act negligently.

Their extensive experience enables them to handle cases efficiently and effectively, guiding clients through the complexities of securities litigation.

How Bakhtiari & Harrison Can Help You

If you believe you’ve been a victim of securities fraud, the first step is to consult an experienced securities lawyer. Securities lawyers in LA County at Bakhtiari & Harrison will evaluate your FINRA arbitration or litigation matter to determine the best course of action. Their legal services include:

Investigating the fraudulent activity and gathering evidence.
Identifying the responsible parties and holding them accountable.
Representing you in negotiations, arbitration, or litigation.
Pursuing maximum compensation for your financial losses.

By partnering with Bakhtiari & Harrison, you gain access to a team of skilled attorneys dedicated to achieving justice on your behalf.

Protect Your Financial Future with Bakhtiari & Harrison

Securities fraud doesn’t just impact your finances; it can also erode your trust in the investment process. At Bakhtiari & Harrison, their mission is to help you rebuild that trust by providing expert legal representation and personalized support.

If you or a loved one has been affected by securities fraud, don’t delay in seeking legal assistance. Time is often critical in these cases, and acting promptly can increase your chances of recovering your losses.

Contact Securities lawyers in LA County at Bakhtiari & Harrison today to schedule a consultation and learn how their securities lawyers in LA County can help protect your rights and secure your financial future. Call now or visit their website to take the first step toward justice and recovery.