UNDERSTAND WHAT SECURITIES ARBITRATION IS AND HOW IT WORKS

Securities arbitration is an alternative dispute resolution process that may be available to you if you have been taken advantage of by a trusted broker. 

ABOUT SECURITIES ARBITRATION & THE FINANCIAL INDUSTRY REGULATORY AUTHORITY

Suppose a broker has mismanaged your financial assets. In that case, the dispute between you and the brokerage firms might be concluded.

It generally happens before a Financial Industry Regulatory Authority (FINRA) arbitration panel.

There is no jury or judge required for such an arbitration forum but a panel of arbitrators (it could be a single arbitrator or up to three arbitrators).

In some cases, there will be only one arbitrator. Some arbitration cases might turn into a complex process, and in these cases, it is paramount that you have the assistance of a trusted Florida securities lawyer.

It was only in 1987 when the United States Supreme Court implemented the arbitration agreements. It decides that securities arbitration may be used in dealing with disputes in the securities industry. Technically, it is a more straightforward substitute for the traditional lawsuit. 

The newest account forms usually include an arbitration clause. Nonetheless, without a contract between the parties, one can not be constrained to mediate such a dispute in the securities industry. 

To be specified that a contractual obligation between the registered representative and the broker-dealers or brokerage firms does not arise from a customer agreement but their registration on FINRA. As all the brokerage firms are registered with FINRA, so should all the registered representatives.

A securities arbitration is low-priced and lasts less than applying to court litigation. Trained arbitrators can resolve complex disputes quite rapidly, and more essential, adequately.

 

HOW ARBITRATION DIFFERS FROM LAWSUITS?

Arbitration is completely different from traditional litigation. The most definitive difference is, in arbitration, the case is being managed by arbitrators instead of judges or juries. The arbitrators will decide the result of a security dispute and handle dispute resolution.

Unlike traditional lawsuits, there is no trial period in arbitration. Instead, there is just one hearing which takes place in the conference room. Another difference is rules for evidence. The traditional court has strict rules regarding evidence submission in the court. However, in arbitration, the flexibility allows you to submit and present evidence.

Most importantly, the right to appeal in arbitration is quite limited. There are very few or almost zero chances of appeals in the arbitration. That’s why it is suggested to consult with experienced attorneys before filing the claims in court.

At Clark Law Firm, being experts in the legal profession, we have successfully served many clients in dealing with securities law, unauthorized trading, punitive damages, breach of fiduciary duty, and many other cases. If you are facing any investment disputes or securities arbitration in Florida, feel free to reach out to us and discuss your case.

SECURITIES ARBITRATION ATTORNEY

A securities lawyer typically handles securities disputes to recover the losses caused by investment fraud, securities fraud, or other stockbroker misconduct. He will help you understand how the arbitration process works in a timely manner and provide you with the best legal advice about FINRA arbitrations.

FIND TRUSTED SECURITIES ARBITRATION LAWYERS

At Clark Law Group, P.A., we use our extensive experience and business knowledge to approach and resolve every case to maximize recovery. If you are facing securities arbitrations or other investment disputes in Florida, ask for a free consultation at (954) 790-5181.

    HOW LONG IS THE SECURITIES ARBITRATION PROCESS?

     

    FINRA serves one of the best arbitration forums worldwide, dealing with dozens and thousands of securities arbitrations cases. The securities arbitrations happen under the control of the National Association of Securities Dealers (NASD).

    The process of securities arbitration is less time-consuming than using a court proceeding. However, there are still some steps one needs to follow when initiating the FINRA arbitration.

    • Firstly, your securities arbitration lawyer needs to file a statement of claim or other forms. You might have to pay a filing fee. FINRA will then share your claim to the broker-dealer or the brokerage firm against your claim. In most cases, they’ll answer your claim by denying it.
    • Then, FINRA will hand over lists of public arbitrators, non-public arbitrators, and one with both public and non-public arbitrators. Your securities arbitration attorney has to rate the arbitrators by preference. You may opt for only public arbitrators. Based on your attorney ranking, FINRA has to choose a panel of three arbitrators.
    • A pre-hearing conference might be required so you can choose the date or a hearing location.
    • If both parties agree on a date and location, they will meet to swap the necessary documents, financial statements, or other evidence to represent their claim or defense best. Your attorney might have to look at all your records and account statements.
    • Before twenty days of the arbitration hearing, you may provide a list of witnesses. The arbitration hearings are not to be conducted in court but can occur at the FINRA office or the hotel or conference rooms. Both sides should present their testimonies, opening statements, closing arguments, or other documents to continue the arbitration proceeding. As in a court trial, you/your lawyer, the brokerage firm, or other member firms can make objections, but the rules are often more carefree and are not strictly enforced.
    • After the final hearing, in one or two weeks, you might expect an arbitration response. A written decision will be available for any arbitration panels. If an arbitration award is made in your favor, the respondent or the brokerage firm will have to pay their debts. Contrary, they might lose their securities license.

    A securities arbitration attorney will need to communicate to the opposing counsel and understand all the problems about your investment losses. The years of experience and knowledge of the securities laws and brokerage industry might make a difference in resolving disputes. Seek the best legal representation at Clark Law Group, P.A.

      Securities Fraud Arbitration

      There are different types of securities fraud arbitration, and the vast majority of these frauds use all sorts of means to deceive and mislead investors. 

      Examples of securities fraud and most common schemes:

      • Ponzi schemes: an investment scheme that takes money from investors and uses them to achieve high rates of returns;
      • Pyramid schemes: similar to the Ponzi scheme, but it constantly enrolls new people;
      • High yield investment: a promise of high rates of returns;
      • Foreign currency fraud;
      • Accounting fraud;
      • Mutual fund fraud;
      • Internet fraud.

      Securities fraud is just as severe as other types of white-collar crimes. Depending upon the facts of a particular case, providing false information, giving bad advice, or offering insider knowledge, are all forms of this type of crime. 

       

      WHEN DOES AN ARBITRATION HEARING USUALLY HAPPEN?

      A securities arbitration only happens if both parties cut a deal to do so. A written agreement might be required for such a dispute to take place. When the parties decide to arbitrate, the arbitrators will be neutral third parties. 

       

      WHAT IS THE SECURITIES INDUSTRY?

      The name of the securities industry can be, at times, confusing. Security is a contract that states if the holder can sell or buy the asset listed in the future. It is used to raise capital in the private or public markets.

       

      WHEN MUST BROKERAGE FIRMS ARBITRATE AT FINRA?

      Brokerage firms must arbitrate at FINRA if the dispute happens between the members of FINRA: brokers and brokerage firms. It can also arise out of the securities business of a brokerage firm or a broker. 

      SECURITIES ARBITRATION CLAIM

      FINRA sponsors arbitration forums and offers a mediation program. As mentioned above, the arbitration process starts with one party filing a statement of claim. Both parties then rely on a final decision. The results are called arbitration awards.

      A statement of claim will include the dispute’s details, dates, the names of the brokerage firms or any other entities, and the type of relief.

       

      DESCRIPTION OF CLIENT SERVICES PROVIDED BY A SECURITIES ARBITRATION ATTORNEY

       

      If you have suffered investment fraud due to a brokerage firm’s negligence, you need to immediately contact a securities arbitration attorney. At Clark Law Group, P.A, we use our knowledge and devotion to handle and protect the financial recovery of the victims.

      If we determine you have a case and you choose to work with us, we will:

      • Fight to protect your rights;
      • Analyze the relationship with the brokerage firm and inform you about the securities arbitration process;
      • Inform you about the document request, filing fees, or other costs;
      • Find the best way to recover your losses and avoid court litigation;
      • Advise you on how to protect yourself from future investment scams or securities arbitration frauds.

      Aggrieved investors sometimes do not understand how securities dispute. Call us for a free consultation and learn more about an arbitration process, FINRA arbitration panel, or customer agreements.