Who oversees the arbitration proceedings?
The arbitration proceedings are overseen by the organization stipulated
in the mandatory arbitration provision of the agreement between the investor
and his or her stockbroker or financial institution. Most securities arbitration
proceedings instituted in the United States are administered by FINRA.
Attorney Chad Kohler explains how the selection process works in these
types of cases in the video below.
The FINRA Arbitration Panel
If your case is handled via FINRA arbitration, an arbitration panel comprised
of FINRA representatives will hear the evidence and decide the outcome
of your case. FINRA arbitrators must follow stringent guidelines as outlined in the
Code of Arbitration Procedure.
The arbitrator or panel of arbitrators (three individuals) are neutral
third parties designated to resolve the dispute. Any decision they make
is referred to as an award, which is binding. Any decision made by an
arbitrator cannot also be taken to court.
Arbitrators are charged with maintaining control over their conferences
and hearings, understanding and properly applying the FINRA Code of Arbitration
Procedure, and use every avenue for resolving the matter expediently and