What is securities arbitration law?
Securities arbitration law is a branch of law that deals with resolving disputes between investors and brokerage firms. In North Carolina, the North Carolina Securities Division (NCSD) is responsible for enforcing the state’s securities laws and regulations. Securities arbitration is a process that provides investors with an alternate form of dispute resolution. When investors have a dispute with their broker, they can file a claim with the Financial Industry Regulatory Authority (FINRA). This is an independent, nonprofit organization that is authorized by the federal government to act as a dispute resolution forum for customers and broker-dealers. When a dispute is filed with FINRA, a panel of three independent arbitrators is assembled to hear the case. The arbitrators will consider evidence from both sides of the dispute and will make a decision. These decisions are final and binding, meaning that the parties involved must abide by the decision, even if it is not in their favor. In North Carolina, FINRA is the only organization authorized to provide securities arbitration services. This means that only FINRA can hear disputes between investors and their brokers. If an investor is not satisfied with the outcome of the arbitration, they may appeal to the North Carolina Court of Appeals. Securities arbitration law is an important tool for North Carolina investors to resolve disputes with their brokers. It provides an independent forum to resolve disputes in a timely and cost-effective manner.
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