How does FINRA investigate and adjudicate disputes?

FINRA, or the Financial Industry Regulatory Authority, is the largest non-governmental regulator for all securities firms doing business in the United States. In California, FINRA is responsible for investigating and adjudicating disputes between securities firms and individuals or companies. When a dispute arises between a securities firm and a customer, the customer can file a complaint with FINRA. The customer must provide detailed information about the dispute, including the names of the parties involved, the facts of the dispute, and any other relevant information. Once a complaint is received, FINRA representatives will investigate the complaint. This includes gathering relevant documents, conducting interviews, and reviewing the dispute. They will also attempt to come to an agreement between the customer and the securities firm. If they cannot come to an agreement, FINRA may refer the case to an arbitration panel. The arbitration panel is made up of three arbitrators, usually picked at random, who have knowledge and experience in the financial industry. The claimants and the responding party both have the opportunity to present their case and submit evidence. The arbitrators will then make an independent decision based on the evidence presented and the FINRA rules and regulations. The decision of the arbitrators is binding, meaning they cannot be appealed or overturned. In this way, FINRA investigates and adjudicates securities dispute in California. Through the arbitration process, FINRA helps to ensure fairness and a resolution to disputes between securities firms and customers.

How does FINRA investigate and adjudicate disputes?

Related FAQs

Related Blog Posts