FINRA Dispute Resolution

Overview of Arbitration & Mediation

Arbitration and mediation are two distinct methods of resolving securities disputes between two or more parties. Disputes, claims or controversies arising out of business dealings with any FINRA brokerage firm can be resolved in arbitration or mediation.

 

Arbitration is a formal dispute resolution process in which the parties—customers, brokers, or brokerage firms making or responding to a claim—select a neutral, third party called an arbitrator, to listen to the arguments set forth by parties, study the testimonial and/or documentary evidence, and render a decision on the matter. By arbitrating your claim, you forego the opportunity to have the same matter decided by a court of law because an arbitration award is final and binding.

 

Mediation is an informal, voluntary and non-binding process. A mediator facilitates negotiations between disputing parties. The mediator's role is to help the parties find a mutually acceptable solution to the dispute.