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FINRA Arbitration Claims

The Financial Industry Regulatory Authority, or FINRA, administers one of the largest arbitration forums in the United States.  FINRA generally hears all disputes with licensed financial advisers and  stock brokers. Our firm has a robust FINRA practice and we file approximately 10% of all FINRA customer arbitrations nationwide. As a result of having such an active practice, our attorneys are deeply familiar with the arbitration process and use this knowledge to better serve our clients.

According to statistics released by FINRA, less than 20% of all customer-initiated arbitration claims proceed to a final arbitration hearing.  The claims that do proceed to a final arbitration statistically result in more awards against investors than in favor of them.  In fact, according to FINRA, investors whose cases proceed to arbitration lose more than 50% of the time. For this reason, it is critical that investors hire competent counsel who has a successful track record of winning these cases.  We have been fortunate to achieve significant results for our FINRA clients throughout the country.  Here is a sampling of recent awards, from various jurisdictions, with links to the FINRA decisions:

Date of Award Amount Location Link to Award
April 20, 2017 $130,789 Colorado Award
April 13, 2017 $1,073,440 Utah Award
January 30, 2017 $97,130.31 New Jersey Award
July 27, 2016 $523,616 Florida Award
December 18, 2015 $35,000.00 Pennsylvania Award
October 7, 2014 $1,010,150 New Mexico Award

If you or someone you know has a customer dispute with a financial adviser, please contact us today for a free and confidential consultation.

Do I need an attorney to file a FINRA arbitration?

Like a court case, an individual does not need an attorney to file a FINRA arbitration and may file a case pro se.  That does not mean that you should file a FINRA case without an attorney.  FINRA arbitrations are complex legal proceedings and you should seek competent professional advice from an attorney experienced in prosecuting these cases.

Is filing an investor complaint with FINRA the same as filing a FINRA arbitration?

No.  This is a common source of confusion among the investing public.  The two processes are unrelated.  FINRA’s investor complaint center is used only to make FIRNA aware of potentially fraudulent behavior. If you want to recover monetary damages, you have to file a FINRA arbitration.

What is the statute of limitations for a FINRA arbitration claim?

FINRA 12206(a) provides that no customer can bring a claim more than six years from the “event or occurrence” giving rise to the claim. While FINRA offers some guidance regarding the interpretation of this rule, it is often a point of disagreement between counsel as to what exactly triggers the “event or occurrence” for a given FINRA arbitration.  As such, the arbitrators assigned to your case are free to interpret this rule as they see fit.

How often do investors win FINRA arbitrations?

According to FINRA’s own statistics, claimants lose FINRA arbitrations more than 50% of the time.  For this reason, it is crucial to hire an attorney who is experienced in representing investors in FINRA arbitration cases.

How many arbitrators will decide my case?

Cases involving claims of more than $100,000 require in-person hearings before three arbitrators and smaller cases are decided by one arbitrator.

How long do FINRA arbitrations last?

In our experience, most FINRA arbitrations conclude within 1 – 1.5 years of filing. However, FINRA arbitrations are complex legal proceedings and each one may have its own unique issues that may cause delays.