What is Securities Arbitration?
Arbitration is a form of dispute resolution in which the parties agree on a neutral third party, usually a panel of 1 to 3 people, to hear the evidence and decide the case. The decision of the arbitrator is usually final and binding.
What is FINRA?
The Financial Regulatory Authority (FINRA) is the largest independent regulator for all securities firms operating in the United States, overseeing about 4,700 brokerage firms, 167,000 branch offices and 635,000 registered securities representatives. FINRA not only regulates and enforces the securities laws; it administers the largest dispute resolution forum for investors, registered securities representatives and securities firms. FINRA performs most securities arbitration claims.
What is the difference between arbitration and litigation?
The main difference between arbitration and litigation is that in arbitration a neutral panel of 1 to 3 arbitrators hears and decides the case instead of a judge or jury. Arbitration is private, while litigation takes place in a public courtroom. Discovery and evidentiary rules are more limited in arbitration than in litigation. Unlike court litigation where appeal of a verdict is possible, the arbitration decision is usually binding with no appeal possible. Securities arbitration historically has been favored over trial litigation because it is more efficient and less costly.
What broker actions cause investors to seek securities arbitration attorneys for recourse?
Common securities arbitration and litigation grounds include claims of suitability, fraudulent omissions and representations, breach of contract, breaches of fiduciary duty, unauthorized trading, churning and negligence.
Do I have a valid case?
The only way to determine if you have a valid case for securities arbitration or litigation is to consult with a securities lawyer. Securities arbitration attorneys of Napoli Bern Ripka LLP are experienced in these types of cases and knowledgeable about current financial markets and state, federal and FINRA securities laws. Call for a free consultation with our securities arbitration attorneys today to determine you legal options.
