What is the purpose of a FINRA panel and how does it work?
The Financial Industry Regulatory Authority (FINRA) is an independent regulator of the U.S. securities industry. In Florida, FINRA provides an arbitration forum for settling disputes between customers and securities firms. A FINRA arbitration panel is a group of neutral, impartial arbitrators who handle these disputes. The purpose of a FINRA panel is to provide an efficient and cost-effective process for resolving securities disputes. The process is voluntary and less expensive than going to court. It is also faster and more private, as the proceedings are confidential. When a customer and a securities firm cannot settle a dispute on their own, they can file a statement of claim with FINRA’s arbitration system. The statement must include details of the dispute and a list of potential witnesses. Each side must submit answers and evidence within 30 days. The panel then decides how to resolve the case, taking into account the evidence presented by both parties. The panel has the authority to award damages to either party and can also order corrective action, such as additional disclosure or disclosure of losses. The parties can appeal the decision, but the appeals process can be lengthy and costly. FINRA’s arbitration process is designed to ensure a fair and impartial resolution of securities disputes. It is an important component of securities arbitration law in Florida that provides an alternative to going to court.
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