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The Why, How, When, And What Of Hiring Arbitration Attorneys For Investors
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Why do you need FINRA arbitration attorneys?

When you do business with a national or large regional brokerage firm, there is every chance that you will be asked to mandatorily sign a FINRA arbitration agreement. The Financial Industry Regulatory Authority (FINRA) is the largest independent securities regulator in the United States.

While some investors sign the FINRA arbitration agreement fully aware of its implications, there are several that are ignorant about this very important clause. By signing this agreement, you are subjecting yourself to the following conditions:

•Should a dispute arise between you and your brokerage firm resulting from investment negligence, financial mismanagement, fraud, or other reasons, you cannot sue the broker or firm in a court of law.

•You should enlist the services of arbitration attorneys if you wish to file a claim.

Thus, it is evident that your FINRA arbitration lawyer is your only hope of getting justice in such a scenario, as you cannot take your case to the court of law. This reiterates the importance of selecting the right attorney to defend you.

How does one initiate the FINRA arbitration process?

As a layman, you likely have absolutely no idea about FINRA litigation and arbitration. Thus, you need to seek out the services of an experienced lawyer or law firm that has handled several FINRA arbitration cases with positive results. Once your chosen attorney has heard your case in detail and examined pertinent paperwork, the attorney will proceed to file a Statement of Claim (SOC) with the FINRA. Along with the SOC, there are a myriad of supplementary forms that need to be submitted. All of this detailed paperwork is done efficiently in the hands of an experienced attorney.

With the paperwork submitted, it is now the job of FINRA to serve a notice citing the claim to the stock broker or brokerage firm in question. In most cases, the broker or firm denies that their actions have brought upon financial losses on you as the investor.

When does the arbitration process begin?

The arbitration process begins from here on with both sides choosing their panel of arbitrators from a list that has been given to them. It might take a few days before the final panel of arbitrators is shortlisted and selected. The prehearings, evidence gathering, finalization of witnesses (if any) and hearings with your FINRA arbitration lawyer are the next important steps that follow.

What happens after the arbitration hearing?

Depending on the evidence presented, witnesses questioned, and arguments made by the arbitration attorneys, the arbitration panel sits together to decide the nature of the award. If this award is in your favor, you are entitled to receive the compensation mentioned in the award from your broker or brokerage firm. A firm that fails to pay the award within the stipulated time could even have their securities license revoked.

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