What is securities arbitration law?

Securities arbitration law is the legal framework established in Washington and across the United States that sets out the process by which securities-related disputes are handled. These disputes often involve financial losses incurred by individuals due to the actions of a broker, firm, or other entity. A securities arbitration process is designed to provide investors with a way to seek compensation for financial damages that occur in the course of trading securities. Securities arbitration is handled by the Financial Industry Regulatory Authority (FINRA). FINRA is an independent regulatory organization that provides an alternative to the court system for managing securities-related disputes. A FINRA-appointed arbitrator will evaluate the evidence and render a decision that is binding, without the need for a trial. In order for arbitration to take place, both parties must agree to utilize the process and to abide by the decision of the arbitrator. Depending on the situation, the securities arbitration process may involve a review of documents, witness interviews, and/or a hearing. The goal is to resolve the dispute in a timely and cost-effective manner. If a resolution is not reached through arbitration, then the parties can seek recourse in the court system. In Washington and other states, securities arbitration law provides investors with a way to seek redress when they have suffered financial losses due to the actions of a broker, firm, or other entity. Arbitration can provide investors with a quicker and more cost-effective alternative to the court system.

What is securities arbitration law?

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