FINRA Arbitration
FINRA arbitration is the mandatory forum for almost every dispute between a customer and a brokerage firm, because the customer agreement makes it so. Tracy Pride Stoneman represents investors in these claims in FINRA arbitration nationwide, from Westcliffe, Colorado.
By Tracy Pride Stoneman, securities arbitration attorney Updated
| What happened | Rule or law | How it is proved |
|---|---|---|
| Statement of Claim filed with FINRA Dispute Resolution | FINRA Rule 12302; the claim must be eligible under Rule 12206 (six years from the events) | Day one. The claim sets out the facts, the rules broken and the damages sought |
| Firm files its Answer | Rule 12303 | 45 days after service of the claim |
| Parties rank and strike the arbitrator lists | Rules 12400 to 12403; since 2011 a customer may require an all-public panel | Shortly after the Answer. Three arbitrators for claims over $100,000, one for smaller claims |
| Document exchange under the Discovery Guide | Rules 12505 to 12507; Document Production Lists 1 and 2 | 60 days after the Answer. Depositions are rare; most discovery is documents |
| Evidentiary hearing | Rule 12600 | Typically twelve to eighteen months after filing, in a hearing location near the customer |
| Award issued | Rule 12904 | Within 30 days of the close of the record; the award is public on FINRA Arbitration Awards Online and must be paid within 30 days |
A FINRA panel can award compensatory damages (out-of-pocket losses or market-adjusted “well-managed account” damages), interest, costs, attorney’s fees where a statute or contract allows them, and punitive damages in egregious cases. Claims must be filed within six years of the events under FINRA Rule 12206, and shorter state statutes of limitation may also apply.
If any of this sounds like your account, the next step costs nothing: a free, honest evaluation. Tell me what happened or call (719) 783-0303.
Common questions
FINRA Arbitration: what clients ask
What is FINRA?
FINRA, the Financial Industry Regulatory Authority, regulates brokerage firms and stockbrokers in the United States. It also runs the arbitration forum where customer disputes with those firms are resolved.
How long does a FINRA arbitration take?
Many cases settle before a hearing. Those that go to a final hearing commonly take more than a year from filing to award, depending on the complexity of the case and the schedules of the arbitrators and the parties.
Who decides my case?
A panel of arbitrators, usually three for larger claims, selected through a FINRA process in which both sides rank and strike candidates. Investors can choose an all-public panel, meaning no arbitrator who works in the securities industry.
Your move
A free evaluation has no downside other than your time.
Tell me what happened. I will tell you honestly whether you have a case worth pursuing — and every way I can be paid, including contingency: nothing unless you recover.