FINRA arbitrators are dedicated individuals serving the investing public and the securities industry by resolving securities-related disputes. ... FINRA arbitrators listen to both sides of a securities-related dispute, weigh the facts and render a final and binding decision.
The Financial Industry Regulatory Authority (FINRA) is an independent, nongovernmental organization that writes and enforces the rules governing registered brokers and broker-dealer firms in the United States.
A claimant initiates an arbitration by filing a statement of claim that specifies the relevant facts and remedies requested. A respondent responds to an arbitration claim by filing an answer that specifies the relevant facts and available defenses to the statement of claim.
The cases involve an investor and an individual or entity registered with FINRA, such as cases between investors and brokers, between investors and brokerage firms, and between investors and brokers and brokerage firms; and. The claim is filed within 6 years from the time the events giving rise to the dispute occurred.
12902. Hearing Session Fees, and Other Costs and Expenses
| Amount of Claim (exclusive of interest and expenses) | Hearing Session W/ One Arbitrator | Hearing Session W/ Three Arbitrators |
|---|---|---|
| $25,000.01 to $50,000 | $450 | $600 |
| $50,000.01 to $100,000 | $450 | $750 |
| $100,000.01 to $500,000 | $450 | $1,125 |
| $500,000.01 to $1,000,000 | $450 | $1,325 |
Yes, arbitrators are compensated at the rate of $300 per hearing session, with an additional $125 per day if acting as Chairperson at the hearings on the merits. For cases filed on or after April 19, 2021, Chairpersons will receive an additional $250 for each hearing day.
You must be registered with FINRA if you're engaged in the securities business of your firm, which includes salespersons, branch managers, department supervisors, partners, officers and directors. You are required to pass qualification exams to demonstrate competence in your particular securities activities.
The SEC oversees FINRA. FINRA lays out the rules that govern brokers overseeing some 3,700 brokerage firms and almost 630,000 registered securities representatives.
A board of governors oversees FINRA, made up of the FINRA chief executive officer, the NYSE Regulation chief executive officer, 11 governors from the public, and another 10 industry insiders.
Arbitration hearings last about four days, but mediations are typically resolved in one session that lasts about eight hours. As a result, mediations usually are less costly. Mediation can also be less adversarial and is something to consider if your firm prefers a less formal setting to resolve disputes.
The Arbitration and Conciliation (Amendment) Act, 2015 grants the liberty to the parties to appoint an arbitrator mutually. The procedure in relation to appointment of arbitrator(s) is provided under Section 11 of the Act. A person of any nationality may be an arbitrator, unless otherwise agreed by the parties.
FINRA does not have an appeals process through which a party may challenge an award. This means that FINRA does not hear appeals on arbitration awards. However, under federal and state laws, there are limited grounds on which a court may hear a party's appeal on an award.
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