How does a securities arbitration decision become final?

Securities arbitration decisions become final once all appeals have been exhausted. The process of appealing a securities arbitration decision can vary depending on the state in which it is being appealed. In California, arbitration decisions are initially reviewed by an administrative body known as the Financial Industry Regulatory Authority (FINRA). If an appeal is deemed necessary, the decision is then reviewed by the American Arbitration Association (AAA). If a decision is appealed again, the appeal is heard by the California Superior Court. Once all appeals have been exhausted, the final decision of the arbitrators becomes legally binding. This means that the decision cannot be overturned by a court and must be followed as its written. If either party does not abide by the terms of the decision, they can be held legally responsible by the other party and/or by the state. In some cases, the terms of the decision can be negotiated between the parties. This type of negotiation is often called a post-arbitration settlement agreement. A settlement agreement is not legally binding unless it is approved by the court. To sum up, securities arbitration decisions become final when all appeals have been exhausted and the decision is no longer able to be overturned. Negotiations between the parties can also occur once a final decision has been reached, but these must be approved by the court in order to become legally binding.

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How does a securities arbitration decision become final?

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