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

A FINRA (Financial Industry Regulatory Authority) Panel is an arbitration tribunal used to resolve disputes between a customer and a securities broker or financial advisor. The Panel consists of three arbitrators who are appointed by FINRA – a chairman and two members – and who are approved by both parties involved in the dispute. The purpose of a FINRA panel is to provide a fair, efficient, and cost-effective resolution to disputes between customers and their brokers or financial advisors. The Panel listens to both sides, reviews the evidence, and then makes a ruling on the dispute. The Panel is not bound by the rules of a civil court and instead relies on the applicable securities arbitration law as its guide. The process begins when a dispute arises between a customer and his or her broker or financial advisor, and the customer files a claim with FINRA. The claim is reviewed by FINRA and a Panel is appointed. The Panel listens to both sides of the dispute, reviews the evidence, and makes a ruling. The Panel has the authority to award the customer monetary damages, including attorney’s fees, as well as other relief. The Panel’s ruling is binding on both parties and cannot be appealed. Customers can also elect to have their claims resolved through mediation, which is a less formal process. Both mediation and arbitration are designed to resolve disputes in a fair and efficient manner without the need for a court trial.

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

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