News Release

NASD Regulation's 'Settlement Weeks' Register Major Successes; 90 Percent of Cases Resolved Through Special Program

Washington, D.C.—NASD Regulation, Inc. today announced that 45 of the 50 cases involving disputes between investors, brokerage firms, and registered representatives were successfully mediated during the two ‘Settlement Weeks’ held thus far. Settlement Week is a special program developed to encourage investors to try mediation by offering significant cost savings over arbitration, which is typically more costly. A record 90 percent of all cases brought to mediation settled during the two Settlement Weeks in Ft. Lauderdale (September 8-12) and New York City (October 13-17).

Three more Settlement Weeks will be held in: Houston, TX (November 10-14); Los Angeles, CA (December 1-5); and San Francisco, CA (December 8-12).

During Settlement Weeks, mediators from NASD Regulation’s roster serve at reduced rates. For claims under $30,000, a three-hour mediation will cost $150 per party; a savings of at least 50 percent. For larger claims, eight hours of mediation will cost each party $600, half of which can be applied toward the party’s arbitration costs if the matter is not resolved in mediation.

Mediation is a voluntary, non-binding dispute resolution alternative in which an impartial individual helps concerned parties to reach a settlement. The parties involved control the process and negotiate the outcome of their own disputes, making mediation a highly effective resolution tool.

"The outstanding results we have seen from the first two Settlement Weeks demonstrate that the program provides an affordable mediation tool that resolves disputes quickly and effectively," said Linda D. Fienberg, NASD Regulation’s Executive Vice President of Dispute Resolution. "Our overall mediation program has been very effective. We recently found that 98 percent of the investors and brokerage community who used the program in the two years since it began were extremely satisfied with the process."

Investors interested in the mediation program should contact NASD Regulation’s Director of Mediation, Kenneth L. Andrichik, at (212) 858-4400.

NASD Regulation oversees all U.S. stockbrokers and brokerage firms. NASD Regulation, and The Nasdaq Stock Market, Inc., are subsidiaries of the National Association of Securities Dealers, Inc. (NASD), the largest securities-industry self-regulatory organization in the United States.