What is the FINRA dispute resolution process?

The Financial Industry Regulatory Authority (FINRA) is a self-regulatory body for the securities industry which includes brokers, dealers, and other financial professionals. As part of its mission, FINRA provides a dispute resolution process to settle securities disputes between investors and their brokers. This process is designed to provide a fair and efficient process for settling disputes. The FINRA dispute resolution process begins when an investor files a claim with FINRA’s Arbitration Department. Upon receiving the claim, FINRA assigns an arbitrator, or panel of three arbitrators, to hear the case. Generally, the arbitrator(s) are from outside the securities industry. Arbitration hearings provide the opportunity for both sides to present evidence and arguments regarding the dispute. The hearing is conducted in an informal setting, and is intended to limit the formalities that would be present in a court of law. After the hearing, the arbitrator(s) will decide who wins the dispute. The arbitrator’s decision is binding, and must be followed by both sides. In most cases, the decision is rendered within 30 days of the hearing. The FINRA dispute resolution process provides a fair and efficient way to settle disputes in the securities industry. It is designed to be cost-effective and avoid the long delays and costs associated with court proceedings. It is important to note that in Indiana, the FINRA dispute resolution process is handled by the Indiana Department of Financial Institutions’ Securities Division.

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