What is FINRA mediation and how does it differ from FINRA arbitration?

 

A: FINRA mediation is voluntary and is a more informal process than FINRA arbitration or litigation. During mediation, both parties work toward a resolution with an impartial third party mediator. The mediator works with both parties and helps guide the discussions to remain focused and productive. The goal of mediation is to find a mutually satisfactory resolution. Unlike FINRA arbitration, the mediator has no power to make decisions in the case, but the result that both parties agree to is binding.

What you should understand about mediation, though, is that it is best for your FINRA lawyer to file for an arbitration proceeding first. It is not recommended to pursue mediation outside of arbitration. In fact, mediation can run concurrently with arbitration. Even if a full settlement is not reached in mediation, major areas of the dispute may be identified during the process, which can help with later arbitration or stockbroker litigation.

If you have been the victim of investment fraud and have questions about FINRA mediation, arbitration, or litigation, call the respected securities fraud attorneys with the law firm of Meyer Wilson today for a FREE consultation. Don't forget to take a look at our FREE book for investors: Five Signs of Investment Fraud ...And What to Do if it's Happened to You.