Losing money due to broker misconduct is unacceptable. Get help recovering the compensation that is rightfully yours by reaching out to a FINRA attorney who can help you with your arbitration claim.
Arbitration through the Financial Industry Regulatory Authority (FINRA) is typically the best way to go about obtaining full repayment of the losses you’ve endured at the hands of a stockbroker you trusted with your investments.
However, pursuing arbitration can be costly when you don’t have legal assistance, and going before FINRA, your broker, a financial planning corporation, and/or a brokerage firm on your own may be intimidating.
Fortunately, the experienced attorneys at Wolper Law Firm won’t back down without a fight. Your FINRA lawyer has the ambition and training you need to secure the compensation you deserve. If your broker has wronged you, we’ll do whatever we can to build a claim so compelling, FINRA will have no choice but to come down with a decision in your favor.
Responsibilities of FINRA
FINRA itself is overseen by the U.S. Securities and Exchange Commission (SEC). Their primary goal is to ensure that the financial markets in the United States are running smoothly and fairly. Some of their key responsibilities include educating investors, implementing and enforcing ethical guidelines for all registered brokers and broker-dealers, and ensuring that brokers and firms comply with these ethical rules.
Investors who have reason to believe that their stockbroker or financial planner has wronged them in some way, causing them enormous stock and investment losses that could have been prevented if it hadn’t been for the misconduct of these corporations and/or individuals, can file a complaint with FINRA and potentially be awarded repayment of these losses.
When to File a Claim with FINRA for Investment Losses
Even if you have noticed a considerable loss, you may simply think that it was part of the risk you took in investing in the first place. This may be true in some cases, but you should be able to count on your stockbroker to avoid such losses wherever possible.
Some stockbrokers will make poor decisions surrounding your investments if it means they’ll see considerable personal financial gains, so you should be prepared to bring them to justice for this type of misconduct.
With that being said, there are some types of fraud that brokers engage in more frequently than others. The good thing is that these schemes almost always leave a trail of financial documents that can support your claims if you choose to proceed with FINRA arbitration. These schemes include:
- Failure to supervise
- Misrepresentation and/or omission
- Excessive trading (churning)
- Failure to diversify
- Selling away
- Unauthorized trading
- Unsuitable investment recommendations
In the event that you are unsure whether you’ve been defrauded by investors, you can bring your financial records and other relevant documents to one of our attorneys, who can assist you with your case. If we find any evidence of misconduct, we’ll take the steps necessary to get your money back, which might require filing a FINRA complaint.
What to Expect from Your FINRA Arbitration Hearing
Your FINRA arbitration hearing will take place before either a single arbitrator or a panel of three arbitrators, depending on how sizable your losses were. The higher your losses, the greater the likelihood that a panel of three arbitrators will be necessary.
An arbitration hearing is quite similar to going to court in that both parties have the chance to present their version of events. You will be able to make a statement, present evidence demonstrating the losses you endured, and have witnesses testify for you. These can be both individuals who speak to the facts of the case, known as fact witnesses, and expert witnesses, if appropriate.
The other party will also be given the same opportunity to defend themselves.
Once the arbitrators have heard both parties plead their case, they will retire to deliberate and review the evidence of the case. From beginning to end, it could take as long as 18 months to hear a decision and to obtain an award if your claim is a success. If the arbitrator’s decision comes down in your favor, the responsible party will have up to thirty days following the decision to get your settlement to you.
Failure to do so can result in additional sanctions by FINRA and legal action on the part of your attorney, should it become necessary.
Contact a FINRA Attorney Today
Pursuing arbitration through FINRA is often the best way to ensure that you are fully compensated for the loss you took due to broker negligence or misconduct.
If you are interested in learning more about how a highly trained FINRA lawyer at Wolper Law Firm can help you with your claim, come in for a free, confidential case review. We can be reached by phone at 800.931.8452 or via the quick submission form included below when you are ready to set up your free review.
Filing a FINRA complaint can be overwhelming, and the thought of having to bring your case before a panel of arbitrators may be intimidating. We’ve seen firsthand just how difficult it can be to gather up the courage to fight for the money that is rightfully yours. For this reason, we have provided this quick FAQ below so you can better understand some of the most common questions surrounding FINRA complaints and what to expect if you choose to move forward with your arbitration claim. If you happen to have other questions or would like a more personalized idea of what’s to come for your case specifically, contact our office to set up a free consultation.
What is the statute of limitations for filing a FINRA arbitration claim?
FINRA mandates that any complaints must be filed within six years of the date of the incident in question. If you did not discover a stock loss, investment loss, or other situation involving stockbroker misconduct until after the incident occurred, the six-year deadline may not begin until the discovery date. Unfortunately, if your FINRA complaint is not filed within six years, in most cases you will lose the chance to be awarded the compensation you might have otherwise won.
Can I appeal a FINRA arbitration decision?
No, you cannot. When arbitrators issue a decision, this decision is final and is not able to be appealed. For this reason, many wronged investors will start off by going to mediation in the hopes of obtaining a settlement prior to going to arbitration. Arbitration is typically less expensive and decisions are generally issued more quickly here than they would be if you tried to file a lawsuit against a crooked broker, usually making it the more attractive option overall for investors who have suffered significant losses.
Is there a way to recover my losses without going before FINRA?
As previously mentioned, going to mediation is an excellent option if you want to avoid a hearing, and filing a lawsuit could be another option. But FINRA arbitration is typically the most likely to deliver the results you are looking for. Not only could you recover compensation for your losses, but you will have the opportunity to hold the liable party accountable for their misconduct, thus decreasing the chances that another investor will suffer damages as a result of the same irresponsible stockbroker or brokerage firm.