Investor Options in Resolving Securities-Related Disputes
Investors have several dispute resolution options when facing security-related disputes. The Financial Industry Regulatory Authority (FINRA) recommends that investors consider the dispute resolution techniques outlined below.
First, the investor should contact their brokerage firm and report the discrepancy or dispute, in writing, to the appropriate department or manager. Often, the brokerage firm will have authority or insight on how to rectify the problem quickly and easily.
Next, the investor may want to initiate arbitration against the broker or the brokerage firm. Arbitration is an efficient and inexpensive method of resolving disputes between parties by neutral, qualified individuals who serve as decision makers after hearing all facts from all parties involved. Arbitration awards are final, binding and subject to court review only in limited situations. Thus, pursuing claims through arbitration usually precludes investors from pursuing the same claims through the courts.
An investor may file a Request for Mediation to FINRA, at any time. Once FINRA receives the request, they will contact all parties to explain the mediation process and seek their agreement. Mediation must be agreed upon by all parties.
Other resolution alternatives include filing a complaint with the SEC, the FINRA Investor Complaint Center, or with state securities regulators. If there is evidence of illegal or unethical activity by a broker or brokerage firm, investors may file a tip with FINRA’s or SEC’s Office of the Whistleblower.
Finally, if an investor is seeking arbitration it is advised to choose an attorney. If an investor cannot afford an attorney, some law schools provide legal representation through securities arbitration clinics.
Fort Lauderdale Securities Litigation and Arbitration Attorney
Contact Fort Lauderdale securities litigation and arbitration attorney Howard N. Kahn, Esq. if you or someone you know has a securities or broker dispute. He is an experienced securities litigation and arbitration attorney, and is available to assist individual investors, brokers, and brokerage firms involved in securities matters. You can reach him at 954-321-0176 or online.