Why Hire a FINRA Arbitration Lawyer?
FINRA arbitration is not like other legal proceedings
FINRA arbitration has its own procedural rules, its own discovery framework, its own arbitrator selection process, and its own hearing conventions — none of which are the same as court litigation. An attorney who is experienced in state court civil litigation, employment law, or even general securities law is not necessarily equipped to handle FINRA arbitration effectively. The two proceedings are structurally different in ways that matter enormously for outcomes.
In court, a judge applies the rules of evidence, controls the proceeding for fairness, and writes a reasoned opinion that is subject to appellate review. In FINRA arbitration, there is no judge. The rules of evidence are applied loosely. The award is final — grounds for appeal are narrow and rarely succeed. A panel of three arbitrators drawn from FINRA’s regional pool decides the case based on what they hear at the hearing. The quality of that hearing is entirely dependent on the skill and preparation of the attorneys presenting it.
What brokerage firms bring to FINRA arbitration
When an investor files a FINRA arbitration claim against a broker-dealer, the firm assigns the defense to attorneys who handle FINRA arbitration cases regularly — sometimes dozens per year. These attorneys know the FINRA Code of Arbitration Procedure, the regional arbitrator pool, the firm’s standard defenses, and the discovery practices that work in their favor. They are not learning FINRA arbitration on the investor’s case. They have done it before, many times.
An investor represented by an attorney without specific FINRA arbitration experience faces this institutional knowledge gap at every stage of the proceeding — from the Statement of Claim through arbitrator selection, discovery, motion practice, and the evidentiary hearing. The gap is not theoretical. It shows up in settlement negotiations, in arbitrator selections, in hearing preparation, and in the award.
What a FINRA arbitration lawyer actually does
Evaluates the claim before filing
A FINRA arbitration lawyer evaluates the strength of the claim, identifies all potentially liable parties, quantifies damages, and assesses the realistic range of outcomes before a single document is filed. This evaluation prevents weak claims from being filed and ensures strong claims are structured to maximize recovery. At Bakhtiari & Harrison, every case evaluation is free.
Drafts the Statement of Claim
The Statement of Claim is the investor’s opening document — it describes the facts, identifies the legal theories, and establishes the damages sought. A poorly drafted Statement of Claim can limit recovery, create inconsistencies that the defense exploits at hearing, and signal to the arbitration panel that the claimant is unprepared. A well-drafted Statement of Claim frames the case for maximum impact from the first filing.
Manages arbitrator selection strategically
Arbitrator selection is one of the most consequential steps in FINRA arbitration — and one that general practice attorneys are least equipped to handle. FINRA provides both parties with lists of potential arbitrators and the opportunity to rank and strike candidates. An attorney familiar with the regional arbitrator pool knows which arbitrators have presided over similar cases, how they have ruled, and what their backgrounds suggest about their approach. This knowledge directly affects who decides the case.
Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee from 2013 to 2017 — the body that oversees FINRA’s arbitrator roster and selection processes. His institutional knowledge of how arbitrators are selected and evaluated is a direct and irreplaceable advantage in this phase.
Conducts FINRA discovery
FINRA discovery is more limited than federal court discovery but strategically critical. A FINRA arbitration lawyer knows which documents to demand — account opening materials, suitability questionnaires, trade confirmations, internal supervision records, email communications, exception reports — and how to use FINRA’s discovery enforcement mechanisms when the broker-dealer resists production. The internal documents that broker-dealers are most reluctant to produce are frequently the most damaging at hearing.
Prepares and presents the evidentiary hearing
The evidentiary hearing is where cases are won or lost. A FINRA arbitration lawyer prepares the client’s testimony, selects and prepares expert witnesses, organizes the documentary record, and delivers the opening statement, direct examination, cross-examination, and closing argument. Every element of this preparation requires specific FINRA arbitration hearing experience — experience that only comes from having done it many times before.
Negotiates settlements from a position of strength
Most FINRA arbitration cases settle before hearing. The settlement value of a case is directly correlated with how credibly the claimant’s counsel can present the case at hearing — a broker-dealer that believes the claimant’s attorney is unprepared for hearing will offer less. A broker-dealer facing experienced FINRA arbitration counsel with a fully developed evidentiary record will pay more to settle. Experienced counsel changes the settlement economics of every case.
Why the FINRA NAMC chairmanship matters
Most attorneys who describe themselves as FINRA arbitration lawyers have never had any connection to FINRA’s governance or rulemaking. Ryan Bakhtiari served as Chairman of the FINRA National Arbitration and Mediation Committee — the advisory body that makes rules and policy for FINRA arbitration — from 2013 to 2017. He presently serves as a FINRA securities arbitrator.
This means he participated directly in writing the rules that govern every FINRA arbitration proceeding. He understands not just what the rules say but why they were written the way they were — and how panels interpret them. This institutional knowledge has no equivalent in legal practice. It is not something that can be replicated through years of ordinary FINRA arbitration practice.
Why experience on both sides of the table matters
David Harrison spent years as in-house counsel at Morgan Stanley Dean Witter — defending the firm against investor claims and regulatory actions. He began his career as a Series 7-licensed registered representative at Shearson Lehman Brothers. He now uses that institutional knowledge exclusively on behalf of investors. Understanding how brokerage firms build their defenses — from the inside — is a direct strategic advantage that cannot be replicated by attorneys who have only ever practiced on the claimant side. For more on the firm’s attorneys visit the attorneys page.
What to look for when hiring a FINRA arbitration lawyer
- Specific FINRA arbitration experience: not general securities law experience, not litigation experience — FINRA arbitration specifically. Ask how many FINRA arbitration cases the attorney has taken to hearing in the past three years.
- Familiarity with the claim type: an attorney who has never handled a structured note case cannot effectively evaluate a structured note claim. Ask whether the attorney has handled cases involving the specific product or misconduct at issue.
- Knowledge of the regional arbitrator pool: FINRA arbitrators are drawn from regional pools. Ask whether the attorney is familiar with the specific FINRA hearing location and the arbitrators in that pool.
- Track record: ask for specific results. Bakhtiari & Harrison’s track record includes the $54.1 million Citigroup FINRA arbitration award — the largest FINRA arbitration award ever levied against a major Wall Street brokerage in favor of individual investors.
- Fee structure: contingency fee representation means the attorney is only paid if they recover money for you. Bakhtiari & Harrison represents all investor claimants on a contingency fee basis.
- Partner-level attention: ask who will actually handle your case. Bakhtiari & Harrison is a two-partner firm — every client works directly with Ryan Bakhtiari or David Harrison throughout the engagement.
Frequently asked questions — hiring a FINRA arbitration lawyer
Does it cost anything to hire Bakhtiari & Harrison for a FINRA arbitration claim?
No upfront cost. Bakhtiari & Harrison represents investor claimants on a contingency fee basis — the firm is only paid if it recovers money for the client. If the firm does not recover, the client owes nothing. Initial case evaluations are free. There is no charge to discuss your potential claim.
Can I represent myself in FINRA arbitration?
You are not required to have an attorney to file a FINRA arbitration claim — but it is strongly inadvisable. Brokerage firm respondents are represented by experienced FINRA defense counsel in virtually every case. The procedural complexity of FINRA arbitration — from drafting the Statement of Claim through arbitrator selection, discovery, and the evidentiary hearing — places unrepresented claimants at a significant and unnecessary disadvantage. Experienced representation on a contingency fee basis means there is no financial barrier to having qualified counsel.
How is a FINRA arbitration lawyer different from a general securities attorney?
A FINRA arbitration lawyer has specific, repeated experience in FINRA’s arbitration forum — including the specific rules, discovery practices, arbitrator selection process, and hearing conventions that are unique to FINRA. General securities attorneys, litigators, and even attorneys who handle SEC enforcement matters are not necessarily experienced in FINRA arbitration. Ask specifically about FINRA arbitration hearing experience before retaining any attorney for an investor claim.
How long does FINRA arbitration take?
FINRA arbitration typically takes 12 to 18 months from filing to award for standard cases. Complex cases involving larger damages, multiple parties, or sophisticated financial products may take longer. Bakhtiari & Harrison manages the complete process and keeps clients informed at every stage.
What if my claim is too small to justify a lawyer?
Because Bakhtiari & Harrison works on a contingency fee basis, the size of the claim does not determine whether representation makes financial sense for the investor — the firm absorbs the cost risk. Separately, investors frequently underestimate the value of their claims by focusing only on out-of-pocket losses and missing consequential damages, interest, and in appropriate cases punitive damages. A free case evaluation will give you a realistic picture of the full claim value before any decision is made.
Contact a FINRA arbitration lawyer — free consultation
Contact Bakhtiari & Harrison for a free, confidential evaluation of your potential FINRA arbitration claim. Investor cases are handled on a contingency fee basis — no recovery, no fee.
Investor cases are handled on a contingency fee basis — no recovery, no fee.
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