Securities Arbitration: An Update to Dispute Resolution through FINRA, Including a Discussion of Recent Trends

FINRA (the Financial Industry Regulatory Authority) provides the exclusive forum for the arbitration of disputes that arise between a customer and his or her securities brokerage firm. Such disputes are the subject of mandatory arbitration provisions that exist in nearly all brokerage account-opening agreements. By providing a detailed explanation of the FINRA arbitration process and its central components, attorneys Kevin Galbraith and Michael Giarrusso offer viewers professional insight and perspective on a range of issues, including vetting a potential case, preparing and filing a Statement of Claim, and shepherding that claim through the discovery process and to a merits hearing or a negotiated settlement.

In addition, they will offer insight into some recent trends in securities arbitration through a discussion of cases involving non-traded REITS and financial elder abuse.

Learning Objectives:

1. Understand a brief background of FINRA and its mission to ensure the integrity of financial markets and to provide a forum for dispute resolution
2. Appreciate that FINRA is likely the exclusive forum in which investors may pursue their legal remedies in disputes with brokerage firms
3. Address the application of FINRA’s eligibility rule and the timeliness of a claim
4. Identify a viable case (and identify how to avoid poor ones)
5. Recognize common causes of action, including fraud, unsuitable recommendations, failure to supervise, churning, over-concentration, unauthorized trading, breach of fiduciary duty, etc
6. Prepare a Statement of Claim on behalf of an investor
7. Navigate the remainder of the arbitration process, including panel selection, discovery, motion practice, potential settlement and hearing
8. Discuss FINRA rule changes, statistical results, and recent case trends