What issues can be addressed in a securities arbitration hearing?
In North Carolina, securities arbitration hearings are held to address disputes between investors and stockbrokers or their firms. The hearings are conducted by a panel of arbitrators which is appointed by a self-regulatory organization (SRO) such as FINRA or the North American Securities Administrators Association (NASAA). The issues that can be addressed in a securities arbitration hearing include the following: • Misrepresentations or omissions of material facts concerning an investment. • Unsuitable investments or investment advice. • Breach of fiduciary duty by a broker or their firm. • Failure to execute or cancel an order. • Unauthorized trading or excessive trading. • Fraud or negligence in carrying out trades. • Improper handling of customer funds or securities. • Failure to supervise other brokers or their firms. • Claims related to margin accounts. • Claims for damages caused by a broker or their firm. Finally, securities arbitration hearings may also be used to resolve disputes between investors and investee companies or their representatives. These claims may include claims of breach of contract, fraud or misrepresentation, and other similar claims. These issues can all be addressed in a securities arbitration hearing. The outcome of the arbitration is binding, and if the investor is successful, they may be entitled to some or all of their losses, as well as interest and legal fees.
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