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

The difference between a securities arbitration panel and a FINRA panel is that securities arbitration panels are impartial panels that are established for the purpose of determining disputes between investors and securities professionals. FINRA panels, on the other hand, are established by the Financial Industry Regulatory Authority (FINRA). The purpose of FINRA panels is to make sure that securities professionals comply with FINRA regulations and standards. Securities arbitration panels are typically made up of three members, including a chairperson, and function similarly to a court of law. The panel hears evidence from both sides in the dispute and ultimately decides on a verdict. In contrast, FINRA panels are usually made up of only one or two members, and the decisions of these panels are generally binding. In Oregon, securities arbitration panels are usually set up and operated by the Oregon Department of Justice. FINRA panels, however, are set up and operated by FINRA itself. Generally speaking, FINRA panels are used to address issues related to the professional conduct of securities professionals and to ensure that securities professionals abide by FINRA regulations. Arbitration panels are used to resolve disputes between investors and securities professionals. Both types of panels provide a forum for resolution of disputes without costly and lengthy court proceedings.

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

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