What types of sanctions can be imposed by a securities arbitration panel?

A securities arbitration panel is a tribunal of arbitrators that is instituted to resolve disputes between investors and financial advisors. In Alaska, a securities arbitration panel may be organized by the Financial Industry Regulatory Authority (FINRA). The securities arbitration panel has the power to impose a variety of sanctions as a result of improper conduct. These sanctions may include censure, a warning, disgorgement, costs, fines, restitution, and suspension or termination of the advisor’s activities. Censure is a rebuke from the arbitration panel and may be used for an advisor’s violation of laws, regulations, or standards of conduct. Disgorgement is the return of a portion of profits made due to improper conduct. Costs may be charged for the arbitration proceeding itself. Fines are monetary penalties for improper conduct. Restitution is the return of funds that were lost due to an advisor’s misconduct. Suspension or termination of activities is a more serious consequence for the advisor. This can include a ban on trading, which has a very serious impact on the advisor’s ability to conduct business. In addition to imposing sanctions, the securities arbitration panel also has the authority to make awards to the aggrieved party or parties. Awards may include damages, punitive damages, and legal costs. In summary, the securities arbitration panel in Alaska has the power to impose a variety of sanctions as a result of improper conduct. These include censure, disgorgement, costs, fines, restitution, and suspension or termination of activities. The panel also has the authority to make awards to the aggrieved party or parties which may include damages, punitive damages, and legal costs.

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What types of sanctions can be imposed by a securities arbitration panel?

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