FINRA Arbitration Rules You Should Know

If you have landed on this page, chances are, you’re likely an investor who is looking into legal options after suffering serious investment losses. Arbitration with the Financial Industry Regulatory Authority (FINRA) is one of the more popular ways that wronged investors can recover their losses.

However, just like in court, there are certain rules that apply. Below, we go into further detail about some of these rules, including who may be eligible for FINRA arbitration, when an investor is required to arbitrate with FINRA, and how you’ll know that arbitration is the best option for you.

Eligibility for FINRA Arbitration

In order for FINRA to hear a case in arbitration, there are two specific criteria that must be met. They include:

  • The case must involve an investor and an entity registered with FINRA.
  • The complaint must be filed within six years of the events in question.

The same eligibility criteria would apply for cases involving industry parties only, such as complaints involving a broker and their brokerage firm.

When Investors Must Arbitrate at FINRA

Wronged investors often have several options available when seeking restitution for their financial losses. However, in the following situations, investors must arbitrate through FINRA if:

  • Arbitration is required in a written agreement
  • The dispute involves a party registered with FINRA
  • The dispute involves the business done within the registered party’s business or place of employment

Is FINRA Arbitration the Best Option For You?

It can be difficult to tell whether FINRA arbitration is the right choice for you. Your lawyer can give you a better idea of what’s right for you after carefully examining the details of your case.

With that being said, many investors find success in FINRA arbitration because the case can be resolved more quickly than going to court. This is also an attractive option because arbitrators will require the liable party to compensate the victim within thirty days of the decision. In court, it could be years or longer before you ever receive restitution.

Reach Out to a Lawyer with FINRA Arbitration Experience

If you have endured catastrophic investment losses caused by your broker or financial planning institution, you may be entitled to financial compensation. Contact a reputable lawyer at Wolper Law Firm, P.A. to learn more about what your own FINRA arbitration proceedings may entail.

We can be reached through the convenient contact form included below or by phone at 800.931.8452 to schedule your free, no-obligation consultation.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]