Lose money after investing in a GPB Capital Holdings Fund? take action
1.800.931.8452
We can help recover your investment loss. Free consultations, always. CONTACT US

Alternatives to FINRA Arbitration

When it comes to resolving a securities dispute between investors and brokers, it’s essential to be aware of the dispute resolution options available. 

FINRA arbitration is one of the most popular, non-judicial forms of resolving a securities dispute. However, from the perspective of an investor, what are the alternatives—if any—to opting for binding arbitration?

Read on to learn more—and don’t wait to contact a FINRA lawyer near you with Wolper Law Firm to learn more about the options available to you. 

Securities Dispute Resolution: Your Options as a Wronged Investor

When securities investors suffer losses on brokered accounts, they sometimes feel that the negligent or otherwise deficient decisions of the brokerage are to blame. 

Disputes between securities investors and brokerage firms are common. Fortunately, the Financial industry Regulatory Authority (FINRA) offers investors the opportunity to recover damages (either money or securities) through the dispute resolution process. 

Arbitration, in which a neutral third party is selected to resolve a dispute, is one of the most commonly used forms of settling between two parties. 

The other major option for investors looking to recoup their losses is the mediation process, which stands out for a few key differences to arbitration. 

Although formal litigation in court is an option for some plaintiffs, the opportunity to sue for security-related disputes is realistically unavailable to most investors due to contractual language that compels arbitration. These terms are typically agreed to by the account holder upon opening their account. Because of this, arbitration—and sometimes mediation—are the two most common types of dispute resolution. 

Arbitration precludes the possibility of relitigating the dispute in court. FINRA arbitrators or arbitration panels study all relevant evidence, in addition to hearing arguments from both sides, before making a binding decision. 

You can contact an investment loss attorney to learn if your case could be arbitration eligible. 

FINRA Mediation 

FINRA mediation differs from arbitration in a few key ways. For starters, it is an informal process that can be started before or during the arbitration process between the two parties. 

In a mediation, an impartial mediator tries to help the two parties resolve the dispute via the settlement process. The mediator’s job is to interface between the two parties in the hope of finding a mutually satisfactory resolution. 

Another key difference between arbitration and mediation is that mediated decisions are not binding. Rather, a mediated resolution to a dispute remains unofficial until the two parties sign an official agreement. Because of this, either party can back out of the mediation process at any time without consequences—a distinguishing feature that notably separates mediation from arbitration. 

Contact an Investment Loss Lawyer Now

Are you looking to recover damages that you suffered due to the negligent actions of a broker or brokerage firm? Look no further than Wolper Law Firm for help resolving your dispute

Call us at 800-931-8452 or fill out the form at the bottom of this page to schedule a consultation.

Now is the time to talk to an investment loss recovery lawyer. We can help recover your investment loss. Free consultations, always.
Main Office - Fort Lauderdale

1250 S. Pine Island Road
Suite 325
Plantation, FL 33324
Phone: (800) 931-8452
(954)-406-1231

Additional Office Locations (by appointment only)
Atlanta

3355 Lenox Road
Suite 7
Atlanta, GA 30326

Indianapolis

13295 N. Illinois St.
Suite 314
Indianapolis, IN 46032

New York City

275 Madison Avenue
Suite 705
New York, NY 10016

Dallas

3102 Maple Ave.
Suite 400
Dallas, TX 75201

Portland

5933 NE Win Sivers Drive
Suite 205
Portland, OR 97220

Denver

7900 E. Union Ave.
Suite 1100
Denver, CO 80237

Naperville

1700 Park Street
Suite 103
Naperville, IL 60563

Seattle

1001 Fourth Ave.
#3200
Seattle, WA 98154