Dispute Resolution Glossary


Answer – A respondent's written reply to a claim.

 

Arbitration Case Administrator – The person at FINRA who handles administrative matters in arbitration proceedings.

 

Arbitrator – A person chosen to decide arbitration disputes between parties.

 

Associated Person – An associated person is any person engaged in the investment banking or securities business who is directly or indirectly controlled by a FINRA member, whether or not they are registered or exempt from registration with FINRA. An associated person includes, but is not limited to, every sole proprietor, partner, officer, director, or branch manager of any FINRA member. This individual may also be referred to as a broker.

 

Award – A written document provided by the arbitrator(s) stating the disposition of the case.

 

Broker – See definition of Associated Person.

 

Brokerage Firm – See definition of Member Firm.

 

Claim – An allegation or request for monetary or other relief.

 

Claimant – A party that initiates an arbitration or mediation for monetary or other relief.

 

Counsel – An attorney or representative who advises and represents a party in an arbitration or mediation.

 

Counterclaim – A claim filed by a respondent against the claimant.

 

Cross-Claim – A claim filed by a respondent against another already-named respondent.

  

Customer Code – The Code of Arbitration Procedure for Customer Disputes is the set of rules that governs disputes involving customers.

 

Dispute – A disagreement between or controversy involving two or more parties, which may consist of one or more claims.

 

Filing – A party submits to FINRA a statement of claim, which explains the nature of the dispute, and other accompanying documentation to initiate an arbitration.

 

Hearing – A hearing is a meeting of the parties and arbitrators in which the parties present facts and evidence and the arbitrators listen to these presentations to resolve the disputes. A hearing is also referred to as the hearing on the merits.

 

Hearing Session – A hearing session is any meeting between the parties and arbitrator(s) of four hours or less, including a hearing or a prehearing conference.

 

Industry Code – The Code of Arbitration Procedure for Industry Disputes is the set of rules that governs disputes involving securities industry members only.

 

Investor – A person or entity (not acting in the capacity of an associated person or member) that transacts business with any member firm and/or associated person.

 

Mediation Code – The Code of Mediation Procedure is the set of rules that governs the mediation process. Mediation is an option to resolve disputes that could be arbitrated under the Customer or Industry Code.

 

Mediator – A mediator is an individual who assists and guides the parties toward their own resolution in a mediation, but does not decide the outcome.

 

Member Firm – A member firm is a brokerage firm that has been admitted to membership in FINRA, whether or not the membership has been terminated or cancelled. A brokerage firm may be a partnership, corporation or other legal entity.

 

Panel – A panel is the arbitration panel, whether it consists of one or more arbitrators.

 

Party – A person or member firm making or responding to a claim in an arbitration proceeding.

 

Pleadings – A pleading is a statement describing a party's causes of action or defenses. Documents that are considered pleadings are: a statement of claim, an answer, counterclaim, a cross-claim, a third-party claim, and any replies.

 

Prehearing Conference – A prehearing conference is any hearing session, including an Initial Prehearing Conference, that takes place before the hearing on the merits begins.

 

Respondent – A respondent is a party against whom a statement of claim or third party claim has been filed. A claimant against whom a counterclaim has been filed is not a respondent.

 

Service – Service is the act of delivering the statement of claim or other pleadings to those parties named in the arbitration.

 

Statement of Claim – A statement of claim is the initial or amended claim filed by the party or parties initiating the arbitration.

 

Statutory Disqualification – A person is subject to statutory disqualification concerning the person's membership, participation in, or association with a member of a self-regulatory organization, like FINRA, if, among other things, the person has been or is expelled or suspended from membership or participation in, or barred or suspended from being associated with a member of an SRO, foreign or international securities exchange, contract market or futures exchange. For additional statutory disqualification criteria and more detail on this definition, see Section 3(a)(39) of the Securities Exchange Act of 1934.

 

Statutory Employment Discrimination Claim – A statutory employment discrimination claim is a claim alleging employment discrimination, including a sexual harassment claim, in violation of a statute. If the parties to the dispute agree, the claim may be arbitrated at FINRA.

 

Submission Agreement – A Submission Agreement is the FINRA Submission Agreement, which is a document that parties must sign at the outset of an arbitration in which they agree to submit to arbitration under the Customer and Industry Codes. A submission agreement also refers to a FINRA Mediation Submission Agreement, which is a document that parties must sign at the onset of a mediation when they agree to mediate under the Mediation Code.

 

Subpoena – A subpoena is an order for a witness to appear at a particular time and place to testify. A subpoena for production of documents in the control of the witness is called a "subpoena duces tecum."

 

Third-Party Claim – A third-party claim is a claim by the respondent against a party not already named in the statement of claim or any other previous pleading.

 

Unspecified Damages – "Unspecified Damages" is a type of relief a party requests when the amount of monetary relief or the form of other relief is unknown or undisclosed.