How does a securities arbitration decision become final?

A securities arbitration decision is finalized when it is approved by the Financial Industry Regulatory Authority (FINRA). This is the organization responsible for regulating over-the-counter and securities trading in the United States. When a securities dispute arises between a broker-dealer and a customer, the dispute is filed with FINRA. FINRA‘s arbitration process is then followed. This involves an arbitration hearing where a panel of three arbitrators listens to both sides of the case and makes a decision. The arbitration awards are binding and can be enforced by the court. Once the decision is made, the award must be approved by FINRA before it can be considered final. It is then published in a legal database. The only way to overturn or modify a final arbitration decision is to appeal it. The appeals process is complicated and requires the filing of post-hearing motions. The appeals panel may review the arbitration panel’s decision and modify or reverse it. Ultimately, if the decision is not appealed or overturned following the appeal process, it becomes a final award and is legally enforceable. This means that both parties are bound by the terms of the decision and must follow the instructions or pay the damages.

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