What is the process for appealing a securities arbitration decision?

Securities arbitration is a process in which investors can seek to resolve disputes with broker-dealers or other financial professionals. In California, the dispute resolution process for securities arbitration is governed by the California Code of Civil Procedure and the rules of the Financial Industry Regulatory Authority (FINRA). When a securities arbitration case has been heard and a decision is rendered, either party can appeal the decision if they believe it was issued unfairly or in error. To do so, the appealing party must file a Petition to Vacate or Modify with the FINRA panel that issued the decision. The petition must be filed within 45 days of the date that the decision was issued. The petition must include a statement of the basis for the appeal, such as new evidence or the discovery that the panel was biased or made a mistake. If the petition is accepted, the panel will hold a hearing to consider the arguments of both parties and decide whether the decision should be vacated or modified. The panel will consider evidence such as witness testimony and documents presented during the initial arbitration hearing, as well as any new evidence presented by the parties during the appeal hearing. After the hearing is held, the panel will issue a decision on the appeal. The appeal process for securities arbitration is similar to the appeals process for civil cases in California courts. If either party is unsatisfied with the panel’s decision, they can appeal the decision to a court of law. However, this process can be costly and time-consuming, so it is generally discouraged.

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What is the process for appealing a securities arbitration decision?

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