What is the relationship between securities arbitration and mediation?

Securities arbitration and mediation are two separate avenues of dispute resolution designed to help parties involved in a securities dispute. Arbitration is a process in which an unbiased, third-party arbitrator hears both sides of a dispute and renders a binding decision. Mediation, on the other hand, is a voluntary process that relies on a mediator to help the parties reach an agreement without actually making a binding decision themselves. Securities arbitration and mediation are both ways to resolve a dispute without having to go to court. However, the two processes are distinct from one another in several ways. Arbitration is binding and cannot be appealed. Mediation, on the other hand, does not have a binding result; the mediator helps to facilitate an agreement but does not make a final decision for either party. Mediation is often seen as a more collaborative resolution process that can result in a decision or agreement that both parties are satisfied with. The Florida Uniform Securities Act and the Florida Department of Financial Regulation offer securities arbitration and mediation services as well as other dispute resolution options. Additionally, the American Arbitration Association (AAA) and the Financial Industry Regulatory Authority (FINRA) can mediate and arbitrate disputes involving Florida securities. Both avenues of dispute resolution can be effective in resolving securities disputes, but it’s important to understand the differences between them before deciding which process to use.

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What is the relationship between securities arbitration and mediation?

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