Filing a Claim Frequently Asked Questions (FAQ)


  1. How long do I have to file an arbitration? Is there a statute of limitations?
  2. Where do I file my arbitration Statement of Claim?
  3. Will FINRA Dispute Resolution accept cases brought against FINRA firms involving variable annuities?
  4. Does filing a FINRA Arbitration or Mediation toll the statute of limitations in a securities unsuitability case?
  5. If an arbitration claim is served against a registered representative, is the employing broker-dealer notified?
  6. If I win an arbitration case does the other side (broker-dealer) reimburse my fees and costs? Can I request punitive damages and if yes, how much?
  7. What happens to my arbitration request if I don't submit a fee along with my Statement of Claim?
  8. Do I need a lawyer for arbitration?
  9. Would I feel intimidated if I represent myself in the arbitration or mediation process without an attorney?
  10. Can I file an arbitration through FINRA Dispute Resolution against a doctor, lawyer, or other professional?
  11. Are members and/or associated persons required to arbitrate all disputes?
  12. How do I calculate damages if the amount is unknown and unascertainable at the present time?
  13. If we have filed an investor complaint, can we file to start mediation or arbitration?
  14. Can I request attorney fees in my Statement of Claim?
  15. What is FINRA's "simplified arbitration" program?
  16. Can an attorney sign the Submission Agreement on behalf of a party?
  17. Our claim is for $75,000, and we want a single arbitrator to decide our case. Can the respondents obtain a three arbitrator panel by asserting a counterclaim in excess of $100,000?
  18. Will my request for punitive damages change the number of arbitrators appointed to decide my case?
  19. What is a Submission Agreement?

 

 

1. How long do I have to file an arbitration? Is there a statute of limitations?
To take advantage of your legal rights, you must take action promptly or you may lose the right to seek a remedy or recover funds.

Code of Arbitration Procedure Rule 12206 for Customer Disputes and Rule 13206 for Industry Disputes outline the time limits for submitting a claim in arbitration. These rules allow a claim to be filed within 6 years of the occurrence or event giving rise to the cause of action. However, time restrictions, called "statutes of limitations," may be shorter than 6 years. A respondent named in your case might raise a statute of limitations that is shorter than 6 years as a defense to your action. To determine whether any statute of limitations may apply to your case, and to discuss your rights and remedies, we suggest that you contact an attorney.
2. Where do I file my arbitration Statement of Claim?
You should file your Statement of Claim and other related documents with the New York Office. The New York Office address is:

FINRA Dispute Resolution
One Liberty Plaza
27th Floor
165 Broadway
New York, New York, 10006

FINRA Dispute Resolution will then provide you with the name of the person and the office with which you should communicate for future filings and correspondence. You may also file your claim online. Online Arbitration Claim Filing allows any party to submit an arbitration claim using the online system.
3. Will FINRA Dispute Resolution accept cases brought against FINRA firms involving variable annuities?
Yes. FINRA Dispute Resolution accepts cases brought against FINRA member firms involving variable annuities.
4. Does filing a FINRA Arbitration or Mediation toll the statute of limitations in a securities unsuitability case?
Pursuant to Code of Arbitration Procedure Rule 12206(c) for Customer Disputes and Rule 13206(c) for Industry Disputes, when a claimant files a statement of claim in arbitration, any time limits for the filing of the claim in court will be tolled while FINRA retains jurisdiction of the claim.
5. If an arbitration claim is served against a registered representative, is the employing broker-dealer notified?
In general, an employing broker-dealer is not notified if an arbitration claim is served against a registered representative. However, an employing broker-dealer may be notified of an arbitration claim against a registered representative in the following circumstances:
  • If the employing broker-dealer is also named in the arbitration claim, the employing broker-dealer will be put on notice that its registered representative was named.
  • If service of the Statement of Claim cannot be effected at the registered representative's home address, FINRA Dispute Resolution will attempt to effect service at the registered representative's current employment address as listed on Central Registration Depository ("CRD®") records.
  • In accordance with Code of Arbitration Procedure Rule 12901 for Customer Disputes and Rule 13901 for Industry Disputes, if the broker-dealer employed the registered representative at the time the dispute arose, the broker-dealer will be assessed member fees.
6. If I win an arbitration case does the other side (broker-dealer) reimburse my fees and costs? Can I request punitive damages and if yes, how much?
You need to decide what relief to ask for based on the facts of your case. The final decision will be made by the arbitrators in the award after considering the evidence presented. FINRA Dispute Resolution is not authorized to give you legal advice or to comment on the merits of your case. If you feel that you need legal advice, we recommend that you consult a lawyer. For more information, please visit our How to Find an Attorney Web page.
7. What happens to my arbitration request if I don't submit a fee along with my Statement of Claim?
Your claim will be assigned a case number and a deficiency notice will be sent to you indicating the amount due (along with any other deficiencies). Pursuant to Code of Arbitration Procedure Rule 12307 for Customer Disputes and Rule 13307 for Industry Disputes, if all deficiencies are not cured within 30 days, FINRA will close your case without serving your Statement of Claim.
8. Do I need a lawyer for arbitration?
FINRA rules do not require parties to be represented by attorneys. Parties may appear without attorneys. Effective December 24, 2007 a party may be represented by a non-attorney, unless state law prohibits such representation, the person is currently suspended or barred from the securities industry in any capacity, or the person is currently suspended from the practice of law or disbarred. Please be aware that representation by a non-attorney might be considered to be the unauthorized practice of law in some jurisdictions, so please check with the relevant State Bar (or similar organization) for more information. FINRA Dispute Resolution staff members are often asked to make recommendations or referrals regarding legal representation. In our capacity as impartial administrators of this alternative dispute resolution forum, rather than specific recommendations, we've provided some general information on obtaining legal assistance in our How to Find An Attorney section of our website.
9. Would I feel intimidated if I represent myself in the arbitration or mediation process without an attorney?
Most parties are represented by counsel in arbitration and mediation. You should presume that the other party will be represented by an attorney. Here are some factors to consider in determining whether you need an attorney in arbitration or mediation:
  • Do you have a clear understanding of how the arbitration or mediation process works, and of your role in the process?
  • Are you willing to openly discuss settlement options in your case?
  • Are you comfortable speaking directly to the other party involved in this matter and negotiating a settlement that is in your best interest?
  • Can you present the facts and produce relevant information that will assist the other party in understanding any underlying emotional issues and your practical interests?
  • Will you be comfortable if the arbitrator or mediator, rather than your own representative, helps to assess the strengths and recognize any potential weaknesses in your case, and those of the other party, as a tool in reaching settlement?
  • Are you willing to explore creative solutions that you may not have previously considered, in order to find resolution to your case?
  • Are you comfortable drafting the terms of a settlement agreement with the other party, even if counsel represents the other party?
The mediation case flow and arbitration case flow pages provide step by step explanations of the arbitration and mediation processes.
10. Can I file an arbitration through FINRA Dispute Resolution against a doctor, lawyer, or other professional?
FINRA Dispute Resolution operates the largest securities dispute resolution forum in the world. We do not handle non-securities industry claims.
11. Are members and/or associated persons required to arbitrate all disputes?
Pursuant to Code of Arbitration Procedure Rule 12200 for Customer Disputes, members and/or associated persons are required to arbitrate any dispute between a customer and a member and/or associated person if the dispute arises in connection with the business activities of the member or the associated person (except disputes involving the insurance business activities of a member that is also an insurance company), and the customer either requested arbitration or the parties entered into a written agreement to arbitrate. Pursuant to Code of Arbitration Procedure Rule 13200 for Industry Disputes, a dispute must be arbitrated under the Code if the dispute arises out of the business activities of a member or an associated person and is between or among:
  • Members;
  • Members and Associated Persons; or
  • Associated Persons.
Disputes arising out of the insurance business activities of a member that is also an insurance company are not required to be arbitrated under the Code.
12. How do I calculate damages if the amount is unknown and unascertainable at the present time?
You are free to request unspecified damages (to be proved at hearing) in your statement of claim. With respect to the process of calculating and proving your damages, please be advised that FINRA is not authorized to give you legal advice or to comment on the merits of your case. If you feel that you need legal advice, we recommend that you consult a lawyer. FINRA Dispute Resolution staff members are often asked to make recommendations or referrals regarding legal representation. Please see our How To Find An Attorney Web page for more information.
13. If we have filed an investor complaint, can we file to start mediation or arbitration?
Yes. FINRA sponsors a forum for securities dispute resolution. Our arbitration program administers claims involving customers of brokerage firms and disputes between brokerage firms and their employees. We also offer a mediation program. Mediation and arbitration are non-judicial methods of settling disputes between two or more parties. Any type of dispute, claim, or controversy arising out of business dealings with any FINRA member brokerage firm can be resolved in mediation or arbitration. Arbitration is a method of having a dispute between two or more parties resolved by impartial persons. There are certain laws governing the conduct of an arbitration proceeding that must be considered by those planning to use arbitration to resolve a dispute. Most importantly, perhaps, is the fact that an arbitration award is final and binding, subject to review by a court only on a very limited basis. Parties should recognize, too, that in choosing arbitration as a means of resolving a dispute, they generally give up their right to pursue the matter through the courts. You may also want to consider mediation of this dispute through FINRA. Mediation is an informal, voluntary process in which an impartial person, trained in facilitation and negotiation techniques, helps the parties reach a mutually acceptable resolution. You can find information on the arbitration and mediation process at FINRA on our website. Absent a pre-existing agreement to arbitrate disputes between you and the firm, you may also be free to pursue this matter by filing a lawsuit in a court of competent jurisdiction. FINRA Dispute Resolution is not authorized to give you legal advice or to comment on the merits of your case. If you feel that you need legal advice, we recommend that you consult a lawyer.
14. Can I request attorney fees in my Statement of Claim?
Attorneys' fees are frequently requested in arbitration. Arbitrators may consider awarding attorneys' fees, but the procedure and law varies from state to state. It is appropriate for the arbitrators to request the parties to brief this issue.
15. What is FINRA's "simplified arbitration" program?
Simplified arbitration is for claims that involve $50,000 or less in dispute. Simplified arbitration consists of a single arbitrator with no hearings. The arbitrator makes his/her decision based on the pleadings and documents submitted by the parties. The rules that govern simplified arbitration may be found in the Code of Arbitration Procedure Rule 12800 series.

Please refer to the Code of Arbitration Procedure Rule 12900 series for applicable fees. You may also visit our online filing calculator to determine the filing fees in your case.

Finally, please refer to FINRA's Party's Reference Guide for Simplified Cases for additional information.
16. Can an attorney sign the Submission Agreement on behalf of a party?
Yes. Attorneys and other persons filing claims may sign on behalf of a party if they have a written/verbal power of attorney or actual/implied authority from the party to sign on the party's behalf.
17. Our claim is for $75,000, and we want a single arbitrator to decide our case. Can the respondents obtain a three arbitrator panel by asserting a counterclaim in excess of $100,000?
Yes. In this scenario, FINRA will appoint a three member panel because the amount of the counterclaim is over $100,000. The $100,000 threshold will be applied to claimants' claims in the aggregate and to respondents' claims in the aggregate. In other words, if either the claimants or respondents make a claim over $100,000 then three arbitrators will be appointed. Can a respondent obtain a three arbitrator panel by adding a counterclaim less than $100,000, but which brings the total aggregate amount of the dispute to over $100,000? (e.g., the initial claim is 75K and the counterclaim is 60K). No. FINRA will not combine claimants' claims with respondents' claims in determining whether the $100,000 threshold has been met.
18. Will my request for punitive damages change the number of arbitrators appointed to decide my case?
If your claim is for $100,000 or less, exclusive of interest and expenses, one arbitrator will be selected to decide the case unless both parties agree in writing to a panel of three arbitrators. If your claim is more than $100,000 or an unspecified or non-monetary amount, a panel of three arbitrators will be selected to decide the case. FINRA will combine the specified dollar amounts of compensatory and punitive claims when calculating claim amounts but will exclude interest and expenses. Attorneys' fees will also be excluded from the calculation. For a claim of $90,000 in compensatory damages and unspecified punitive damages, FINRA will deem the claim amount to be $90,000 and appoint one arbitrator. If the claim sought a specific amount of punitive damages (e.g. $90,000), FINRA would add the $90,000 punitive claim to the $90,000 compensatory claim for a total claim amount of $180,000. FINRA would appoint three arbitrators in this scenario.
19. What is a Submission Agreement?
A Submission Agreement is a document that signifies that you have elected to submit a claim to FINRA Dispute Resolution and that you agree to abide by the selected arbitrator(s)' decision on any claims filed by the parties. Please note that parties should not alter the language in the Submission Agreement. You can find the Submission Agreement in the "Uniform Forms Guide" located on our Materials to Initiate an Arbitration Claim Web page. You can also complete the Submission Agreement as part of the Arbitration Online Claim Information Form.