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.

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.

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.

Protecting Your Investments With Culver City Investment Fraud Lawyers

Q: 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.

Q: 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.

Are you searching for a trusted Culver City Investment Fraud Lawyer? Look no further. At Bakhtiari & Harrison, we focus on safeguarding investors in the uniquely vibrant and diverse community of Culver City from deceptive practices and fraud. If you suspect misconduct in your investments, it’s crucial to act swiftly. Contact us today to schedule a free consultation and start the path to recovering your assets.

Culver City Investment Fraud Lawyers

Culver City is not only a hub of creativity and technological innovation but also a place with a rich cultural fabric and a dynamic culinary scene. This diversity is mirrored in the types of financial investments and transactions that take place here, making it all the more important to have knowledgeable and experienced attorneys who understand the local landscape. Culver City investment fraud lawyers at Bakhtiari & Harrison are committed to representing investors with zeal and integrity. We understand the intricacies of securities law and are dedicated to providing you with the best possible defense against investment fraud.

To further aid your understanding of the process, here are ten essential questions and answers about the FINRA arbitration process, which is often central to resolving investment disputes:

What is FINRA arbitration? FINRA arbitration is a way to resolve disputes between investors and brokers or brokerage firms outside of traditional courtrooms. It is administered by the Financial Industry Regulatory Authority (FINRA), and offers a faster, usually less expensive route to settle conflicts.

Who can initiate FINRA arbitration? Any investor who believes they have been wronged by their broker or brokerage firm can initiate FINRA arbitration. This process is also mandatory in most cases, as brokerage agreements typically require arbitration in the event of a dispute.

What kinds of disputes are eligible for FINRA arbitration? FINRA arbitration covers a wide range of investment disputes, including issues like unauthorized trading, misrepresentation, excessive trading (churning), and other forms of broker misconduct. Culver City investment fraud lawyers at Bakhtiari & Harrison represent investors in disputes with the securities industry.

How long does the FINRA arbitration process take? The duration of FINRA arbitration can vary, but typically it takes about 12 to 18 months from filing to decision. The timeline can be influenced by the complexity of the case and the availability of parties and arbitrators.

What are the stages of FINRA arbitration? The FINRA arbitration process involves several stages: filing a statement of claim (detailing the grievances), answering by the broker or firm, selecting arbitrators, discovery (exchange of information relevant to the case), hearings, and finally, a decision and award.

How are arbitrators selected? Both parties in the dispute have a say in selecting arbitrators from a list provided by FINRA. The list includes professionals with expertise in securities law and the financial industry, ensuring informed and fair judgment.

What happens during the arbitration hearings? During FINRA arbitration hearings, both parties present their case, including evidence and witness testimony. It resembles a court trial but is typically less formal and does not adhere strictly to legal procedures.

Can arbitration awards be appealed? Unlike court decisions, arbitration awards are final and binding, with very limited grounds for appeal. Culver City investment fraud lawyers at Bakhtiari & Harrison represent investors in disputes with the securities industry. Appeals can only be pursued under certain circumstances, such as arbitrator misconduct or fraud.

What are the costs associated with FINRA arbitration? Costs can include filing fees, hearing fees, and sometimes fees for postponement and discovery. These fees are scaled based on the amount of the claim, making the process accessible to a range of investors.

Why Bakhtiari & Harrison for FINRA arbitration representation?

Culver City investment fraud lawyers at Bakhtiari & Harrison are deeply knowledgeable about FINRA arbitration but are also committed to Culver City residents’ financial integrity. Our firm ensures that every aspect of your case is handled with the attention it deserves, aiming for the most favorable outcome. If you are searching for a Culver City investment fraud lawyer, let Bakhtiari & Harrison guide you through the complexities of investment fraud and FINRA arbitration. Our expert team is ready to help you reclaim what is rightfully yours and ensure that your investment journey is secure in this economically dynamic and culturally rich city.

Call Culver City investment fraud lawyers at Bakhtiari & Harrison today to ensure your investments are protected with the most competent and diligent legal representation in Culver City. Let us help you navigate through the challenges of investment fraud with confidence and expertise. Servicing investors in California, Los Angeles and nationwide.