What is the scope of a securities arbitration award?

The scope of a securities arbitration award is the list of legal remedies that are available to the parties involved when they enter into securities arbitration. Securities arbitration is a process whereby a dispute between two parties involving a securities transaction is adjudicated by a neutral third party. This third party, referred to as an arbitrator, is appointed by the Washington Securities Commissioner. Under the law, an arbitrator is able to award a range of legal remedies. The most commonly available remedies are compensatory damages, rescission of the securities transaction, punitive damages, and attorney fees. Compensatory damages are typically awarded to the claimant in order to reimburse them for the losses that were incurred in the securities transaction. Rescission is the canceling of the securities transaction and requires that the parties be returned to the position they were in prior to the transaction. Punitive damages are intended to punish wrongdoers and deter future violations of the law. Lastly, attorney fees may be awarded to either party if deemed necessary by the arbitrator. Ultimately, the scope of a securities arbitration award is determined by the arbitrator and the specific facts of each case. It is important to note, however, that no matter the remedy awarded, the decision of the arbitrator is binding on both parties and must be complied with. The securities transaction dispute is resolved when the award is finalized.

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What is the scope of a securities arbitration award?

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