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.

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

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