The Initials Steps in FINRA Securities Arbitration

There is a lot that will transpire once you decide to pursue a claim against your broker for misconduct or fraud. In a previous article, FINRA Securities Arbitration: Why It’s Mandatory & What’s Involved, we provided a general overview of the process. Now, we will discuss how the arbitration proceeding is initiated.

Documents to Complete
One of the first steps in recovering your financial loss is to file a Statement of Claim with the Financial Industry Regulatory Authority (FINRA). This claim doesn’t have to be overly complicated; in fact, there isn’t a specific format required. For example, your Statement of Claim can be as simple as a letter setting forth the details to support your claim against the broker or brokerage firm. However, you do need to make sure that you state the facts of your complaint, explain what the representative or brokerage firm did that was improper and the amount of money to which you believe you are entitled to recover as a result of the misconduct. It is helpful if you include any documents that support your case.

You will also need to complete a Uniform Submission Agreement and Claim Information Form that will be submitted with your Statement of Claim, along with the appropriate filing fees to FINRA.

After the Claim is Filed with FINRA
Once all of this information is received by FINRA, the Statement of Claim will be sent to each person or entity that has been named. These parties have to file an answer within 45 days. At this point, they may file a counterclaim in response to any allegations that were made against them. If the parties named in the claim don’t respond, they could be prohibited from “presenting any defenses or facts at the hearing,” according to FINRA Customer Code 12308(a).

The Law Firm of Meyer Wilson
FINRA securities arbitration can be an overwhelming process. If you are not properly prepared for the proceeding, you could hurt your chances of recovering your money. The broker or brokerage firm you name in the arbitration proceeding will most likely be represented by a very sophisticated defense attorney skilled in the area of securities litigation defense. Make no mistake about it – brokers and brokerage firms typically hire highly skilled lawyers to fight these cases. Therefore, you should consider enlisting the help of an experienced securities arbitration attorney to have on your side in order to level the playing field.

The securities arbitration lawyers at the law firm of Meyer Wilson are licensed in Ohio and California and we represent investors nationwide in securities arbitration and litigation claims. We have successfully recovered millions of dollars for our clients. For a free case evaluation, contact us by calling toll-free 1.866.827.6537 or filling out our online form.