If you have a dispute with your financial advisor or brokerage firm, it will likely involve a FINRA arbitration hearing. A panel of arbitrators will hear your case and decide on your award after you file a Statement of Claim.
Your attorney can help you get the best possible results from the arbitration process. Here are some key reasons to hire one.
Reputation
A FINRA arbitration lawyer with a reputation for being strong, persistent, detail-oriented, and knowledgeable can help ensure that your claim receives the full attention it deserves throughout all process stages, including settlement negotiations and the final hearing. Such a reputation also enables attorneys to build relationships with arbitrators and brokerage firms, which can prove helpful when it comes time to select an arbitrator for your case.
Unlike court litigation, the FINRA arbitration process is typically kept confidential, meaning the docket and all filed documents remain private. This can help protect the privacy of investors who have invested their hard-earned money with broker-dealers and investment advisors. However, knowing that a FINRA arbitration award can still be published on a public database is essential, which could compromise your privacy.
Brokerage firms and financial advisors must understand their clients’ investment profiles and risk tolerance. Inappropriate investments or unsuitable recommendations can lead to significant losses, especially when a client is nearing retirement and cannot afford to take on substantial risk. Misrepresentations may include recommending a hazardous investment, mischaracterizing a company’s financial status, or failing to disclose fees and commissions associated with an investment.
If your FINRA arbitration claim is successful, it is often possible to recover attorney’s fees from the defendant’s brokerage firm or individual registered representative. This can significantly improve your economic outcome, as the recovered funds can be used to pay for your legal representation.
Experience
The Financial Industry Regulatory Authority (FINRA) governs the financial industry and handles FINRA arbitration and mediation. FINRA regulates broker conduct, handles enforcement proceedings, and assists with compliance matters. An experienced FINRA arbitration lawyer can assist you in filing your claim and represent you through the entire arbitration process. Unscrupulous investment professionals often target unsuspecting investors with non-conventional investments, such as promissory notes and real estate. Several warning signs indicate that you may be the victim of investment fraud, including guarantees, complex strategies, and account discrepancies.
An expert attorney will be familiar with FINRA laws and have substantial experience managing securities fraud cases. They should be able to provide you with a thorough and accurate assessment of your case, including the likelihood of success. They should also be able to explain the process of FINRA arbitration and how it compares to trial.
When filing a FINRA arbitration, it is essential to craft your Statement of Claim carefully. This includes demonstrating that your stockbroker breached their duty of care and the damages you suffered due to their misconduct. An experienced securities fraud attorney should be able to articulate clearly to the arbitrator, the defense counsel, and other parties the legal standards your stockbroker was expected to meet and how those standards were breached. They should be able to demonstrate that the breach directly caused your losses and that you were entitled to compensation for those damages.
Time
FINRA arbitration proceedings are time-consuming. For example, the discovery phase can stretch out for months. In addition, if you have a hearing or trial, it may last for days. This is why you want to hire a lawyer with experience in FINRA cases. An experienced lawyer will know FINRA procedural rules, including deadlines that cannot be missed, and will be familiar with the types of documents and information you may need to provide.
The right attorney will be passionate about helping you recover monetary losses from financial fraud. They will understand that you have invested your hard-earned money in a financial advisor or brokerage firm and deserve to recover your losses. The right lawyer will also help you determine whether the potential recovery from your FINRA claim makes financial sense for you.
A FINRA arbitration lawyer will review your alleged securities fraud loss and work with you to achieve justice through a successful FINRA claim settlement. They will consider your financial circumstances, the extent of your losses, and the likely expenses associated with a FINRA arbitration case to help you decide whether filing a FINRA claim is appropriate.
If you file a FINRA arbitration claim, the lawyer will guide you through the process until the arbitrators issue an award. If the award is unfavorable, a skilled lawyer will know how to file a motion in court that can challenge the award.
Money
If you bring a securities arbitration against a brokerage firm, hiring a lawyer who will work hard on your behalf is essential. Many attorneys specializing in these cases offer to represent investors on a contingency basis. You pay them only if they win or settle your claim.
The first step in filing a FINRA arbitration is to file a Statement of Claim. This document gives the arbitrators their first impression of your case and must be clear, accurate, and honest.
Following the Statement of Claim filing, each party must engage in discovery.
Once all discovery has been completed, the arbitrators will schedule your hearing. The hearing will be similar to a traditional trial, with each party having an opportunity to present opening and closing statements and introduce evidence such as documents and testimony. The arbitrators will then study the evidence and render a decision called an award. The award will be binding on all parties.
Your lawyer will help you get the compensation from the brokerage company or broker if your claim is successful. Depending on the circumstances, this can be done through attachment, levy, or garnishment proceedings.
