What is the purpose of a FINRA panel and how does it work?

The purpose of a Financial Industry Regulatory Authority (FINRA) panel is to offer dispute resolution between parties involved in securities arbitration disputes in California. This dispute resolution method is less costly than going to court, and often faster. When a dispute arises between the parties involved, the dispute is sent to FINRA. The FINRA Arbitration Department then chooses a panel of one or three arbitrators to hear the dispute. These arbitrators are chosen based on their knowledge of the securities industry and applicable law. In California, the panel is split evenly between public and industry arbitrators. The arbitration hearings are conducted in accordance with the FINRA Code of Arbitration Procedure. During the hearings, the parties have the opportunity to present evidence, question the other party and witnesses, and make arguments. The arbitrators then review the evidence and render an award, deciding the outcome of the dispute. The award has the same legal effect as a court ruling. The FINRA panel provides a fair forum for resolving disputes, and helps to preserve good relations between the parties. It also provides an opportunity for the parties to determine the outcome of their dispute without costly and lengthy court proceedings.

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What is the purpose of a FINRA panel and how does it work?

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