What is FINRA Arbitration? How do I file a case? If you are an investor and are thinking about filing a FINRA arbitration case, here are the useful information you need. Keep following for more info on investor rights matters every week!
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Finra Arbitration: Frequently Asked Questions - Part 1
1. Frequently Asked Questions
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2. FINRA stands for “Financial Industry Regulatory
Authority.” It is a nationwide organization that regulates
securities broker-dealer firms and their stockbrokers. It
has enacted a substantial body of rules and regulations
that govern the conduct of broker-dealer firms and
stockbrokers in the course of their securities
business. When stockbrokers and their employers sell
securities or make investment recommendations to the
public, they must abide by those conduct rules.
FINRA functions under the auspices of the United States
Securities and Exchange Commission. Securities broker-dealer
firms and their stockbrokers are required to
arbitrate disputes with their customers in the arbitral
tribunals organized by FINRA, rather than in a court of law.
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3. FINRA arbitration is an arbitration process that takes place
before panels of three arbitrators, organized by FINRA and
in accordance with the FINRA Code of
Arbitration. Arbitration in general is an alternative dispute
resolution process. It is an alternative to state or federal
court litigation.
FINRA arbitrations are private (not open to the public) and
are generally faster and less expensive than a lawsuit in
state or federal court. The FINRA arbitration process has
some similarities to a typical lawsuit in state or federal
court: it starts with a “Statement of Claim” filed by the
parties seeking relief (compensation) and an “Answer” filed
by the party that was “sued.”
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4. The parties then participate to the arbitrator selection
process, subsequently schedule the hearing and other
important deadlines in the case, and thereafter engage in
the discovery process. The discovery process is much
simplified compared to that in state or federal
court. Among other things, it does not allow depositions.
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5. The evidentiary hearing typically takes place between 12-
18 months from the date of the filing of the Statement of
Claim, though such terms may vary. At the hearing, a
panel comprised of three professionals is presented with
the evidence and hears the parties’ arguments. Typically
within 30 days after the hearing, the panel issues an
“Award” (decision). The FINRA arbitration awards are,
with some exceptions, non-appealable.
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6. In certain types of matters, such as Ponzi schemes or
investment fraud, where investors are victimized by
the same stockbroker or broker-dealer firm, we often
include multiple investors in the same FINRA
arbitration proceeding. We do that when we
determine that they are similarly situated in the
material respects, meaning that their relevant
investment circumstances and their claims are similar.
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7. Investors may call (888-998-0520) or email us
for a free evaluation of their case.
You can learn more about FINRA arbitration
by visiting our website
www.securitieslitigators.com
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8. Alan L. Rosca
Leader Building, Ste. 1255
526 Superior Avenue
Cleveland, OH 44114
Phone: 888-998-0520
arosca@prwlegal.com
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Joseph C. Peiffer
201 St. Charles Avenue
Suite 4610
New Orleans, LA 70170
Phone: 504-586-5259
jpeiffer@prwlegal.com
www.securitieslitigators.c
om/joseph-c-peiffer
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