About this Information
This information has been prepared by the Securities Industry Conference on Arbitration (SICA), a group composed of representatives of various self-regulatory organizations, the Securities Industry Association, and public members. SICA established a uniform system for the resolution of disputes involving investors and broker/dealers, which has been adopted by each of the self-regulatory organizations. |
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What is Arbitration?
Arbitration is a
method of having a dispute between two or more parties resolved by
impartial persons who are knowledgeable in the areas in controversy.
Those persons are called arbitrators. Arbitration of broker/dealer
disputes has long been used as an alternative to the courts because it
is a prompt and inexpensive means of resolving complicated issues.
There are certain laws governing the conduct of an arbitration
proceeding that must be considered by those planning to use arbitration
to resolve the 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. |