FINRA Arbitration Lawyers

Do You Need a Lawyer for FINRA Arbitration?

The FINRA arbitration lawyers at KlaymanToskes can help you file your FINRA arbitration claim and work with you to seek recovery for any investment losses you’ve experienced. Contact our office by either calling (888) 997-9956 or by submitting a form on our website.

If you are in the process or about to start a FINRA arbitration claim against a broker or financial advisor to recover your investment losses, contact the FINRA arbitration lawyers at KlaymanToskes today at +1 (888) 997-9956 or request a free case evaluation to give yourself the best chance of getting a favorable outcome.

The FINRA arbitration lawyers at KlaymanToskes have a long track record of success in FINRA arbitrations against broker-dealers, financial advisors and their firms.

Our securities attorneys have helped investors recover over $600 million* in compensation for damages suffered as a result of financial advisor misconduct, broker negligence, unsuitable investment advice, and/or other securities law violations.

If you have suffered investment losses due to the actions of your broker or financial advisor, we have the experience and resources to fight for you.

Please, contact our office at +1 (888) 997-9956 or request a free case evaluation.

While you do not need legal representation to go through the FINRA arbitration process, it is in your best interest to find and hire an experienced FINRA arbitration lawyer. Many claims that are taken in front of a FINRA arbitration panel without the assistance of a lawyer may not be presented in the most compelling manner, thus making it more difficult to recover any funds.

Brokerage firms are generally represented by experienced lawyers who know how to use the arbitration process to their advantage. So even if you decide to represent yourself, you will be going up against an attorney who knows the complexities of securities law and the FINRA arbitration process.

FINRA recommends that investors seeking to initiate a FINRA arbitration claim hire an experienced lawyer:

Source: https://www.finra.org/arbitration-mediation/how-find-attorney

If you suffered losses with broker or investment advisor, we’d love to speak with you. Contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.

What is FINRA Arbitration?

FINRA arbitration is a legal process unique to the securities industry in which both investment disputes and customer complaints against brokers and financial advisors can be resolved.

Unlike other areas of law, securities is primarily self-regulated by FINRA, the Financial Industry Regulatory Authority instead of the traditional court system. FINRA is overseen by the Securities and Exchange Commission (“SEC”). 

FINRA arbitration (sometimes referred to as securities arbitration) is an alternative dispute resolution (ADR) process whereby disputes between investors and securities firms are heard before a neutral panel of arbitrators.

Below is an overview of the FINRA arbitration process:

Step 1. File a Claim

The FINRA arbitration process begins when an investor or a securities lawyer representing the investor files a Statement of Claim with FINRA.

This Statement of Claim specifies the relevant facts and allegations, as well as the damages requested.

Before you file your claim, speak to a FINRA arbitration lawyer at KlaymanToskes. Our experienced securities lawyer can help ensure your Statement of Claim is well-constructed and includes all the relevant information to maximize your chance of success in arbitration.

Step 2. Answer a Claim

Once the claim is filed, the securities firm representing the broker or financial advisor has 45 calendar days to submit an Answer.

Their answer must:

• Admit or deny the allegations of wrongdoing in the Statement of Claim.
• Outline any affirmative defense(s) on which it intends to rely.

Typically, brokerage firms deny the claims and allege that their broker or financial advisor acted appropriately. Brokerage firms are for-profit businesses so they will generally try to avoid accountability for their employees’ actions.

INVESTORS: During this part of the process, the brokerage firm may offer to settle the dispute. It is important to not accept any offers from the brokerage firm without first consulting an experienced FINRA arbitration lawyer. Brokerage firms will often lowball investors to avoid paying out what they are entitled.

Step 3. Arbitrator Selection

If no resolution is reached through the Answer, the arbitration process will move to the next phase – selecting arbitrator(s).

According to FINRA:

“FINRA arbitrators are independent and are chosen by the parties to issue final, binding awards. FINRA administers an arbitration forum pursuant to rules approved by the SEC. In its capacity as a neutral administrator of its forum, FINRA does not have any input into the outcome of arbitrations.”

For claims up to $100,000 in damages, the case will be heard and the decision will be decided by one arbitrator. For claims above $100,000, the case will be heard and decided by a panel of three arbitrators.

During FINRA’s arbitrator appointment process, FINRA will generate a list of arbitrators called an Arbitrator Ranking Form and provide a Disclosure Report for each arbitrator on the list for your case. FINRA uses a complex algorithm to select the most appropriate arbitrator for each case. The algorithm considers a variety of factors such as geographical area, type of dispute and FINRA’s Code of Arbitration Procedure.

This algorithm is intended to prevent any bias or conflict of interest from influencing the outcome of an arbitration case.

The parties will then rank each arbitrator on the list in favor of their position based on the background information on the Disclosure Report, including education, employment history, and prior ruling in other cases. The Parties may also do independent research. FINRA will consolidate the parties’ lists to appoint the panelists based on the parties’ rankings.

Step 4. Initial Pre-Hearing Conference

Prior to the actual hearing, FINRA will schedule the Initial Pre-Hearing Conference. This is the first time that the arbitrator(s) and attorneys for the parties meet to discuss the case.

As of July 1, 2022, all prehearing conferences are held on the Zoom platform with video. Prehearing meetings may be conducted by telephone if all parties agree.

The purpose of this conference is to set deadlines for discovery, arrange for witness testimony and prepare for the arbitration hearing.

Following the Initial Pre-Hearing conference, there may be additional pre-hearing conferences to address motions, review documents, and discuss other disputes throughout the case.

INVESTORS: This is a complex securities arbitration process. It cannot be stressed enough that you should consult an experienced FINRA arbitration lawyer before the prehearing conference. If you have investment losses, contact our office at +1 (888) 997-9956 or request a free case evaluation.

Step 5. Discovery

Discovery in arbitration involves parties collecting facts and information from each other to strengthen their cases for the hearing. Rules set by the Codes of Arbitration Procedure make parties work together as much as possible to share documents and information willingly. These rules cover making, answering, and objecting to discovery requests, and give arbitrators the power to penalize parties if they misuse the discovery process.

Simply put, Discovery is the process of gathering evidence related to your claim or defense. This includes, but is not limited to:

• Brokerage account statements
• Email correspondence with your broker
• Documents related to any transactions disputed in arbitration
• Expert witness reports

A more complete breakdown of the discovery process and timeline can be found here.

Step 6. Hearings

Hearings are the “trial” of your claim. During hearings, all parties and arbitrator(s) meet in person to conduct the arbitration proceeding. Generally, the location for this meeting will take place closest to the investor’s residence at the time of the dispute.

The Hearing will take place in a conference room either at a regional FINRA office or in an office building or hotel arranged by FINRA.

At hearings, parties present their evidence through witness testimony and documents. Parties also have a chance to question each other’s witnesses and argue their case.

The Hearings are typically broken down into five parts:

• Testimony and Evidence
• Direct and Cross Examination
• Motions
• Exhibits
• Closing Statements

Whatever decision is made at the Hearing is final and binding.

Can the Hearing Take Place Remotely?

With the consent of all parties (or the permission of the arbitrator) hearings can take place via Zoom or other video conferencing platforms.

However, the majority of arbitration hearings still take place in person.

Step 7. Decision & Awards

Upon the conclusion of a hearing, the arbitrator(s) will deliberate and reach their final and binding decision. If the broker or advisor is found at fault, the arbitrator(s) will decide on an award amount for damages (Arbitration Award).

All Arbitration Awards are both final and binding.

The successful conclusion of an arbitration case will result in the investor receiving a monetary award or other relief. It is highly recommended that investors consult with an experienced FINRA arbitration lawyer to give them the best chance for a successful outcome.

When it comes to arbitration, there are no guarantees – but having an advocate for your rights in a securities dispute can make all the difference. An experienced FINRA arbitration lawyer will be able to help you through each step of the process and maximize your chances of receiving compensation from the brokerage firm or advisor at fault.

Is Finding a FINRA Arbitration Lawyer “Near Me” Necessary?

Securities arbitration cases can be complex and time consuming. Investors should seek out an experienced, knowledgeable FINRA arbitration lawyer to represent them in their case.

Unlike most lawsuits, FINRA arbitration is not bound by the court system. This means you do not need to hire an attorney who is licensed in the state where your claim originated.

You don’t need to hire a FINRA arbitration lawyer “near me”.

This is to your benefit as an investor. You can hire the best FINRA arbitration lawyers to represent your interests, regardless of their geographic location.

When looking for the best FINRA arbitration lawyer for your case, the SEC (Securities and Exchange Commission) recommends:

• Consulting with an attorney who is experienced in securities arbitration
• Checking the lawyer’s qualifications and background (checking their bar association or online listings)
• Broaden your search for potential securities lawyers by doing your research online

In addition, you will need an attorney who both practices securities law and has previous experience in FINRA arbitration claims.

Most reputable FINRA arbitration lawyers are willing to provide a free initial consultation to assess your case and discuss how they can help.

What Makes the FINRA Arbitration Lawyers at KlaymanToskes Different

At KlaymanToskes, we are champions of investors, helping investors to recover over $600 million*. With nearly 25 years of legal experience and a sole focus of representing investors in FINRA arbitration cases, our firm is an expert in FINRA arbitration.

KlaymanToskes has a unique understanding of the brokerage industry, having previously represented brokerage firms and brokers in defense work. Attorney Lawrence Klayman also has a background in economics and was a licensed stock broker. With this combined experience, KlaymanToskes has inside knowledge of the brokerage industry and their defenses giving us an advantage as we navigate your case.

The firm also has sophisticated research tools, such as a Bloomberg Terminal, which allows us to perform high-level research on brokerage firms, investment products and markets.

To learn more about FINRA arbitration, contact KlaymanToskes today at (888) 997-9956 or by email at lawrence@klaymantoskes.com. 

Speak with a FINRA Arbitration Lawyer Today

You’ve spent a long time building trust with your financial advisor and your broker, and we understand that placing your trust in someone else after feeling betrayed by them can be intimidating.

At KlaymanToskes, we are committed to helping investors and building a relationship of trust with our clients. We take the time to get to know you and your case, so that we can provide you with the most effective legal representation possible.

We won’t push you into a situation that you’re not comfortable with, and we’ll never move forward until you feel confident in your decision.

Chances are, if you find yourself with significant investment losses due to your broker or advisor, there may be other individuals that have been working with the same professional who may not yet be aware of the losses they may have incurred due to the broker’s misconduct.

Your actions could help protect other unsuspecting investors from potential financial losses.

Contact us today at 888-997-9956 for a free, no-obligation consultation with our experienced FINRA arbitration attorneys. We will review your case and determine if you have grounds to seek recovery of any losses caused by financial advisor misconduct or broker negligence.

We look forward to speaking with you.