What is the role of the American Arbitration Association in securities arbitration?
The American Arbitration Association (AAA) plays an important role in securities arbitration law in California. The AAA is an independent non-profit organization that offers dispute resolution services, including arbitration. In California, the AAA administers the arbitration program for resolving disputes involving the securities industry. Under the AAA’s program, parties to a dispute involving securities may use the AAA to settle the dispute through arbitration. The AAA will appoint an impartial third-party arbitrator to preside over the arbitration hearing. The arbitrator will listen to the parties’ arguments and review any documents or evidence they present. The arbitrator will then issue a final and binding decision, which both sides must abide by. The AAA also provides arbitration services to help parties achieve a pre-litigation settlement. In such cases, the AAA will provide an alternative dispute resolution (ADR) process and can bring parties together to work out a satisfactory settlement. The AAA also helps to protect investors by providing education to the public and interpreting industry trends. The AAA’s role in securities arbitration law in California is important in order to protect investors. The AAA offers parties a quick, fair, and relatively inexpensive way to resolve disputes and helps to resolve investor-broker disputes without the need for costly litigation.
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