Does a securities arbitration panel have the power to award punitive damages?

In New Hampshire, a securities arbitration panel does not have the power to award punitive damages. Punitive damages are reserved for civil court cases, so a securities arbitration panel does not have that authority. Punitive damages are a type of monetary award that is meant to punish a wrongdoer. In securities cases, punitive damages might be awarded if someone has been the victim of fraud or other financial misdeeds. However, in most cases, the SEC or other regulatory bodies manage arbitration disputes, and those organizations are not typically empowered to award punitive damages. Also, securities arbitration panels are typically composed of either a single arbitrator or a panel of three arbitrators. They are legally obligated to issue their decisions based on the facts and circumstances of the case. If the panel has no authority to award punitive damages, then they generally cannot award them, even if they believe it would be appropriate. Ultimately, if someone is seeking punitive damages in a securities arbitration dispute, they should seek to resolve the dispute through the civil court system. That way, they can be sure that the issue is brought before a judge who has the authority to award punitive damages, should they deem them to be appropriate.

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