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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How Do I Prepare for a Hearing?
Parties
must make every effort to prepare the case in advance of the hearing so
that it may be resolved promptly and justly. Preparation includes
arranging for witnesses and documentary evidence to be available for
presentation to the arbitrators at the hearing.
The parties shall, at least 10 calendar days prior to the first
scheduled hearing date, serve on each other copies of documents
(including graphs, charts, and recordings) they intend to present at
the hearing and identify witnesses they intend to present at the
hearing. Failure to comply with this requirement may result in the
arbitrators excluding any document not exchanged or witnesses not
identified. Arbitrators will consider such action at the request of a
party. If all parties agree, they may submit exhibits in addition to
those in the Statement of Claim to the Director of Arbitration for
forwarding to the arbitrators prior to the hearing.
Each party is to bring sufficient copies of any documents it intends to
introduce as evidence at the hearings for each arbitrator and for the
files of the SRO.
The parties should cooperate in the voluntary exchange of documents and
information to expedite the arbitration. Any request for documents or
other information should be specific, relate to the matter in
controversy, and afford the party to whom the request is made a
reasonable period of time to respond without interfering with the time
set for the hearing. Document production and information exchange is to
be accomplished within the time set forth in the Uniform Code.
On the written request of a party or an arbitrator or at the discretion
of the Director of Arbitration, a prehearing conference will be
scheduled. The Director of Arbitration will set the time and place of a
prehearing conference and appoint either a staff person or an
arbitrator to preside. The prehearing conference may be held by
telephone, by written submission, or in person. Under the rules, there
are time tables for parties either to produce requested information or
to object to the production requests. If a prehearing conference
without an arbitrator does not resolve the outstanding issues, those
information-request disputes or issues will be referred to a single
arbitrator prior to the first hearing. Where possible, each party
should submit to the SRO in advance of the prehearing conference a
concise outline of the outstanding issues to be resolved by the single
arbitrator. The single arbitrator has the authority to issue subpoenas,
direct appearances of witnesses and production of documents, set
deadlines for compliance, and issue other rulings that would expedite
the arbitration proceedings or enable a party to prepare its case.
To the extent possible, testimony and documentary evidence should be
exchanged voluntarily by the parties without the use of subpoenas. If a
subpoena is necessary, the arbitrators and any counsel of record have
such power of subpoena as may be provided by the law of the state where
the hearing will be held or by the Federal Arbitration Act. All parties
must be given a copy of the subpoena on its issuance. If a party has an
attorney, the attorney should answer all questions concerning
subpoenas. Parties without attorneys may request that the Director of
Arbitration ask the arbitrators to issue a subpoena. The request should
be in writing, should set forth why the subpoena is necessary and what
efforts the requesting party made to obtain the appearance of witnesses
and the production of documents without the use of the subpoena, and
should include a copy of the subpoena which the arbitrators are
requested to issue. If the arbitrators issue a subpoena, the requesting
party has the obligation of serving the subpoena on the opposing party
and bearing the costs involved as provided by law of the state where
the hearing will be held or by federal law. The requesting party may
need to employ the services of a professional process server to
actually serve the subpoena.
The procedures for the issuance and service of subpoenas vary. Parties
may, therefore, wish to consult with an attorney to insure that legal
requirements in the applicable jurisdiction are satisfied.
In addition to the subpoena process, in some instances the arbitrators
have the power to direct the appearance of persons employed in the
securities industry and the production of records in the possession or
control of such persons. If the parties request the arbitrators to use
this power, they may be required to bear all reasonable expenses in
connection with such appearance or production. All such requests should
be made in advance of the hearing.
One final thought should be kept in mind when preparing for a hearing.
The arbitrators are experienced and knowledgeable individuals. They
appreciate a clear presentation of the case, free from repetition and
irrelevancies. |