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.