Who pays for the costs of securities arbitration hearings?

In Texas, the costs of securities arbitration hearings may be paid by either the investor or the broker. Generally, the party that files the claim will bear the burden of the costs associated with the hearing. This means that the investor will be responsible for costs such as the filing fee, administrative fees, arbitrators’ fees, and other miscellaneous costs. The broker, on the other hand, will be responsible for costs like the bond and witness fees. It is important to note that the Texas State Securities Board has rules and regulations in place that ensure that both parties share equally in the costs of the hearing. This means that the investor and the broker will be required to pay their respective costs each time they appear before the arbitration panel. In cases where the broker has caused significant financial harm to the investor, the board may order the broker to pay the investor’s costs in addition to their own. Regardless of who pays the costs of the hearing, it is important that both parties are adequately represented and act in good faith throughout the hearing. This means that each party must strive to present the facts and arguments in an organized and coherent manner, and they must refrain from engaging in underhanded tactics like violating confidentiality rules or intimidating witnesses.

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Who pays for the costs of securities arbitration hearings?

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