How does FINRA investigate and adjudicate disputes?
FINRA, the Financial Industry Regulatory Authority, is a not-for-profit organization authorized by Congress to regulate the securities industry in the United States. The primary responsibility of FINRA is to investigate and adjudicate disputes between customers and registered firms and brokers. In order to investigate and adjudicate these disputes, FINRA has a number of procedures in place. The first step in the FINRA dispute resolution process is arbitration. An arbitration panel is established and each party to the dispute is given an opportunity to present their case. The panel then decides the issue based on the facts and evidence presented by the parties. This decision is final and binding. The second step in the FINRA dispute resolution process is mediation. In this step, a neutral third party mediator assists the parties in resolving their dispute. If the parties reach an agreement, it is put in writing and the dispute is settled. If there is no agreement, the dispute may proceed to arbitration. Finally, FINRA may pursue enforcement action against a registered firm or broker if the dispute is not resolved through arbitration or mediation. This may include fines, suspension, or expulsion from the securities industry. Overall, the FINRA dispute resolution process is designed to protect the interests of both investors and the securities industry. The process is fair and impartial and ensures that all disputes are resolved quickly and efficiently.
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