Initiate an Arbitration
Arbitration is a method of resolving a dispute between two or more parties by neutral, qualified individuals, who serve as decision-makers after weighing the facts of each case presented. The decision-makers are called arbitrators. Awards are rendered by independent arbitrators who are chosen by the parties to issue final, binding decisions. FINRA makes available an arbitration forum—pursuant to rules approved by the SEC—but has no part in deciding the award. Arbitration of securities disputes against brokerage firms, brokers, or both provides a prompt and inexpensive means of resolving issues. There are certain laws governing the conduct of an arbitration proceeding. The most important of these is perhaps the fact that an arbitration award is final and binding, subject to review by a court only on a very limited basis. Parties should also recognize that arbitrating their claims precludes them from pursuing the same claims through the courts.
The arbitration process begins with a party filing a Statement of Claim with FINRA. The party who files the Statement of Claim is called a claimant. The party against whom the Statement of Claim is filed is called the respondent. The Statement of Claim should provide the details of the dispute, including relevant dates, names of entities and individuals involved, and the type of relief requested and the respondents from whom the claimant is seeking relief or damages. The type of relief a claimant may request, includes, but is not limited to, actual monetary damages, interest, and specific performance.
In addition to the Statement of Claim, a claimant must also file a Submission Agreement and pay the appropriate filing fees, either by check or online.
Once the filing requirements are met, FINRA will serve the Statement of Claim on the respondents identified in the Statement of Claim and Submission Agreement. If the filing requirements have not been met, FINRA will notify the claimant of the deficiency, so that the claimant may correct the problem. Once the claimant corrects the deficiency, FINRA will serve the Statement of Claim on the respondents identified in the Statement of Claim and Submission Agreement.
- To file a claim online, visit the DR Portal
- Investors representing themselves may file a claim via the DR Portal or should file the Statement of Claim and other related documents with the New York Office. The New York Office address is:
FINRA Dispute Resolution Services
200 Liberty Street
New York, NY 10281
Customer Code Rules 12302, 12307
Industry Code Rules 13302, 13307