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Comparison Guide to Electing Mediation or Arbitration |
FINRA Dispute Resolution offers securities dispute resolution services to public customers, as well as to FINRA member firms and their employees. As part of its overall mission, FINRA Dispute Resolution strives to ensure that its dispute resolution services are fair, expedient, and cost effective. As a self-regulatory organization (SRO), FINRA is subject to oversight by the Securities and Exchange Commission.
To assist in the resolution of monetary and business disputes between investors and their securities firms (as well as between member firms and between employees and member firms), FINRA Dispute Resolution operates the largest dispute resolution forum in the securities industry, featuring full-scale arbitration and mediation programs. FINRA Dispute Resolution handles nearly 7,000 arbitration cases and over 1,000 mediations annually.
The Mediation Process:
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Is voluntary. The parties also decide who the mediator will be, when the mediation will take place, and how the dispute will be settled.
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Is informal. In mediation, an impartial person—the mediator—promotes negotiations between the disputing parties.
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Is inexpensive. The mediation process is less expensive than arbitration or litigation.
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Is non-binding. Unlike other forms of dispute resolution, such as arbitration and litigation, the mediator does not impose a solution or decide your case. Instead, the mediator guides or helps the parties to reach or create their own solution. Parties may still arbitrate their dispute if they are unable to agree on a settlement.
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Is a "win-win" solution. The mediator’s role is to help the parties find a mutually acceptable solution to their controversy. Since the inception of the program in 1995, more than 6,000 cases have been filed in mediation. Parties who mediate at this forum resolve four out of every five disputes, an 80% settlement rate!!
More than 900 FINRA mediators, diverse in culture and background, have met our rigorous mediator training and mediator experience standards. Many are experienced arbitrators, attorneys, and securities industry professionals who are knowledgeable in employment and securities issues.
Consider mediating your claim before you file an arbitration.
The Arbitration Process:
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Is impartial. Based on the size of your claim, your dispute will be heard by one or more impartial arbitrators. Arbitrators are selected by the parties through an automated system that produces arbitrator lists. Parties may remove any listed arbitrator for any reason. They are encouraged to rank the remaining arbitrators, according to preference.
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Is cost-effective. Arbitration is faster, less expensive, and less formal than litigation.
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Is convenient. FINRA Dispute Resolution conducts arbitrations in 47 cities nationwide. In cases involving securities customers, we select a hearing location closest to the customer’s residence at the time the dispute arose.
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Is fair. During the hearing, parties make brief opening statements explaining what they intend to prove and what relief (e.g., money damages) is sought. Parties have the opportunity to present documents and witnesses in support of their positions, to object to documents and to question witnesses presented by other parties, and to make closing remarks to summarize their positions.
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Is final and binding. Arbitrators evaluate the evidence and arguments presented and reach a final and binding decision (the "award"). Awards are only subject to court review on very limited grounds.
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Is expedient. Arbitrators endeavor to render the award within 30 business days after the close of the proceeding.
More than 7,500 FINRA arbitrators, diverse in culture and background, have met our arbitrator training and arbitrator testing requirements. Many are educators, accountants, lawyers, business experts, or securities professionals.
Learn as much as you can before you begin an arbitration/mediation. In order to get the most out of the dispute resolution process, research all materials available to you, such as the Code of Arbitration Procedure, FINRA Dispute Resolution publications, and more.
To obtain this information, as well as instructions on how to start a mediation or arbitration from FINRA Dispute Resolution, please access our Web site.
If you have any questions after consulting our Web site, please call or write the FINRA Dispute Resolution office closest to you or send an email.
Dispute Resolution Offices
Northeast Region
One Liberty Plaza
165 Broadway
27th Floor
New York, NY 10006
(212) 858-4400
Fax: (212) 858-4429
Southeast Region
Boca Center Tower 1
5200 Town Center Circle
Suite 400
Boca Raton, FL 33486
(561) 416-0277
Fax: (561) 416-2267
Western Region
300 S. Grand Avenue
Suite 900
Los Angeles, CA 90071
(213) 613-2680
Fax: (213) 613-2677
Midwest Region
55 West Monroe Street
Suite 2600
Chicago, IL 60603-1002
(312) 899-4440
Fax: (312) 236-9239
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