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

Securities arbitration panels are tribunals created by the Financial Industry Regulatory Authority (FINRA) to resolve disputes between investors and broker-dealers. In North Carolina, the primary types of sanctions that can be imposed by a securities arbitration panel are: 1. Monetary Awards: The panel can require the broker-dealer to pay a monetary award to the investor. This award can include compensatory damages, attorneys’ fees, and costs. 2. Disgorgement: The panel can order the broker-dealer to pay back any illegal profits that the investor has lost as a result of the broker-dealer’s misconduct. 3. Suspension or Revocation of Registration: The panel can revoke or suspend the broker’s registration, which would prevent them from practicing in that particular field. 4. Censure: The panel can publicly censure the broker-dealer as a form of rebuke. This includes making a statement of the broker’s wrongdoing and publishing it on the FINRA website. 5. Restitution: The panel can order the broker-dealer to pay restitution to the investor, which is the repayment of money that the investor lost because of the broker-dealer’s misconduct. When deciding on a sanction, the panel considers all the facts of the dispute as well as the policies and procedures that should be followed by all FINRA members. Sanctions are intended to be a deterrent and help ensure that ethical practices are followed by broker-dealers in North Carolina.

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

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