FINRA Arbitration and Mediation

STOCKBROKER LAW - Posted on October 21, 2015

The Financial Industry Regulatory
Authority (FINRA) maintains the predominant dispute resolution forum in the United States.
Notably, due to mandatory arbitration clauses contained in new account forms presented to investors by
brokerage firms, investors are required to have their disputes with their brokers resolved in
arbitration as opposed to the courts. This means that instead of a jury trial, disputes will be resolved
by one or several arbitrators appointed to hear your case.

FINRA maintains arbitration and mediation facilities both of which are
designed to facilitate the resolution of disputes between customers and brokerage firms. Arbitration
involves submitting your dispute to a binding decision to be made by arbitrators whereas mediation is
generally a non-binding process designed to facilitate a mutually agreeable settlement and resolution
without the necessity of an arbitration hearing. While arbitration is generally mandatory for retail
customers who have signed an arbitration agreement, mediation is a voluntary process and FINRA
statistics show that more than eighty percent (80%) of mediations result in a settlement.

We offer free initial consultation to investors who feel they may have
been unduly harmed in the financial markets due to the improper conduct of their brokers. To
schedule your free consultation please contact the Law Offices of Timothy J. O’Connor at (518)
426-7700.