What Is FINRA Arbitration?
FINRA arbitration is a formal dispute resolution process designed for investors harmed by brokers and brokerage firms in the securities industry. Most brokerage account agreements contain pre-dispute arbitration clauses that require disputes to go through FINRA securities arbitration rather than traditional court litigation.
While FINRA operates the arbitration forum, the Securities and Exchange Commission has authority to regulate its rules and procedures.
We understand that discovering your broker or brokerage firm may have violated their fiduciary duty feels like a betrayal of trust, and we’re here to help you through this complex process and pursue recovery of your losses.
Here is more on how the arbitration process works…
FINRA, the Financial Industry Regulatory Authority, oversees registered representatives and enforces federal securities laws governing the conduct of investment firm professionals across the country. And this regulatory body takes claims involving fraud very seriously.
FINRA is typically faster and less expensive than litigation in court, with most FINRA arbitration claims awards paid within 30 days of the panel’s decision. The arbitration process follows structured rules and timelines that move cases from filing to resolution much more quickly than the traditional court system allows, often resolving within 18 months compared to years in court.
However, we highly recommend that you hire an attorney who understands FINRA rules to maximize your chances at winning a fair settlement.
Types of FINRA Arbitration Claims
If your broker or financial adviser engaged in misconduct, FINRA arbitration may help recover the losses you've suffered through various claim types. A few of the most common claims that our law firm handles include:Why Choose Robert Wayne Pearce as Your FINRA Arbitration Lawyer?
Robert Wayne Pearce is an experienced FINRA attorney who brings 45+ years of securities litigation experience with a 99% success rate and $185 million in recovered damages for investors harmed by broker misconduct. We represent investors against major brokerage firms nationwide. Our main advantage for you is that we understand every defense strategy these firms may deploy in a FINRA arbitration hearing.
Before the arbitration process begins, our attorneys prepare every case from day one with the assumption it will proceed to a full hearing, ensuring you’re ready for any outcome and any legal arguments the other side presents. We work on a contingency fee basis, meaning you pay nothing unless we recover money for you.
Meet the Team
ROBERT WAYNE PEARCE
Securities Attorney
ADAM KARA LOPEZ
Securities AttorneyHow the FINRA Arbitration Process Works
Understanding each stage helps you prepare and set realistic expectations for the arbitration timeline and your role throughout the proceedings.
- Filing a Statement of Claim: You file a Statement of Claim identifying the respondents, describing the alleged misconduct in detail, and stating the damages sought as compensation for your losses. Your claim must be filed within six years of when the misconduct occurred, so timing is essential to preserve your legal rights under FINRA arbitration rules.
- Discovery and Arbitrator Selection: Both sides exchange documents, including account records, compliance files, supervisory records, and internal communications that reveal what the firm knew about problematic conduct by their brokers. FINRA uses the Neutral List Selection System to generate arbitrator candidates that both sides rank, strike, and accept based on a number of factors.
- The Hearing and Award: Both sides present evidence, witness testimony, and legal arguments before the arbitration panel in a format similar to court proceedings with strict rules governing what can be presented. Arbitrators review all evidence presented and issue a written award, typically within thirty days after the hearing concludes with closing arguments from both sides. FINRA awards are binding and cannot be appealed. That's why it's so important to hire an experienced FINRA attorney. You only get one chance except under very limited circumstances.
Don’t face experienced brokerage defense counsel alone without skilled legal representation standing by your side throughout the entire process. The Law Offices of Robert Wayne Pearce, P.A., represents investors nationwide in FINRA arbitration cases, and we are prepared to fight to recover all that you’ve lost.
Call (800) 732-2889 for a free consultation. You pay nothing unless we recover for you through successful arbitration or settlement negotiations.
Who Do We Represent in FINRA Arbitration Claims?
We recommend that you bring documentation that helps us evaluate your claim quickly and accurately in our initial review.
Start by gathering all brokerage account statements covering the period of suspected misconduct, and make sure to bring account opening paperwork, including your customer agreement and risk tolerance questionnaire. This will help us establish what your broker knew about your financial situation and investment experience at account opening.
Other things that can help us determine the viability of your claim include written correspondence with your broker, including emails and text messages.
All of this documentation will help us create a timeline of events. Notes from phone calls and prior complaint correspondence submitted to the firm or regulators strengthen your case significantly and show you reported concerns promptly.
We understand that this is a bit difficult to take in, especially if you've lost a significant amount of money. Don't worry, we can cover more of this in your confidential consultation.
Frequently Asked Questions
How long do I have to file a FINRA arbitration claim?
FINRA has a six-year eligibility rule measured from when misconduct occurred, but state statutes may impose shorter deadlines depending on your situation.
What damages can I recover in FINRA arbitration?
Recoverable damages include net losses, market-adjusted losses, excessive fees and commissions, interest, and sometimes punitive damages in egregious cases.
Do I need a lawyer for FINRA arbitration?
You may represent yourself, but brokerage firms retain experienced counsel for every case, making attorney representation essential for success and fair outcomes.
Can I appeal a FINRA arbitration decision?
No, arbitrator decisions are final and binding with no appeal rights available, unlike traditional court litigation where appeals are permitted and encouraged.