How does a securities arbitration decision become final?

Securities arbitration decisions become final after the arbitration panel has made a decision and the decision is either accepted and approved by, or not appealed to, the Financial Industry Regulatory Authority (FINRA). The arbitration decision is binding, meaning that the parties involved are obligated to follow the decision in a court of law. In order to be considered “final” the arbitration panel may grant a Motion to Vacate, or a request to modify the decision, and the parties must agree to the modification before it can become final. This is called a Motion to Vacate Agreement. In some cases, a motion to vacate is not granted but the panel may require additional information from one or both of the parties before making a final decision. Once the additional information is received by the arbitration panel, the decision is then finalized. In New Mexico, a final arbitration decision is filed with the court. The court will then enter a judgment of the decision and the arbitration decision becomes binding and enforceable by law. If either party does not agree with the arbitration panel’s decision, the party can file an appeal with the New Mexico court of appeals. If the court affirms the arbitration panel’s decision, that decision will become final and enforceable in a court of law.

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How does a securities arbitration decision become final?

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