What is the difference between a securities arbitration panel and a FINRA panel?

The difference between a securities arbitration panel and a FINRA panel lies in their purpose and process. Securities arbitration panels are used to resolve disputes between investors and broker-dealers. These panels are made up of three neutral arbitrators who are typically lawyers, investment professionals, or retired judges. The arbitrators are chosen and appointed by a neutral and independent third party to review the facts of the dispute and make a final ruling that is binding on both parties. FINRA panels, on the other hand, are used for the enforcement of securities rules and regulations in North Dakota. These panels are made up of experienced professionals in the field, appointed by FINRA to serve as hearing officers. The hearing officers evaluate the evidence presented to them and make a ruling regarding whether or not an individual or firm has violated any FINRA rules. Unlike arbitration panels, the results of FINRA panels are not binding; instead, the FINRA enforcement action is reviewed by the FINRA National Adjudicatory Council (NAC) for a final decision.

Related FAQs

Is there any way to avoid the costs associated with securities arbitration?
What is the process for amending a securities arbitration award?
Is there a way to expedite the hearing of securities arbitration claims?
What are the benefits of settling securities arbitration claims?
How binding is a securities arbitration decision?
Are there any limitations on the amount of punitive damages available in a securities arbitration case?
What types of damages can be awarded in a securities arbitration case?
How are the costs of securities arbitration disputes divided?
Are there any restrictions on the ability of a securities arbitration panel to award attorney fees?
What types of sanctions can be imposed by a securities arbitration panel?

Related Blog Posts

A Guide to Understanding Securities Arbitration Law - July 31, 2023
Navigating Your Securities Arbitration Case: Step-by-Step Guide for Investors - August 7, 2023
Securities Arbitration: How to Make the Most of Your Claim - August 14, 2023
Securities Arbitration 101: Understanding the Basics of Investor Claims - August 21, 2023
Explaining the Role of Arbitrators in the Securities Arbitration Process - August 28, 2023