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 the purpose and makeup of each. A securities arbitration panel is typically composed of a three-member panel of arbitrators appointed to hear and decide a dispute. Arbitrators must be members of the National Association of Securities Dealers (NASD) or have a specialized knowledge of Tennessee securities law. This type of panel hears disputes that arise between individual parties involved in transactions concerning securities or commodities, such as stocks, bonds, and options. On the other hand, a FINRA panel is composed of representatives from the Financial Industry Regulatory Authority (FINRA). This organization is a self-regulatory organization that oversees the activities of Securities Brokers, Investment Advisors, and other stock market participants. The panel reviews securities claims and governs the conduct of parties associated with the securities industry. The purpose of both panels is to ensure that individuals involved in securities transactions adhere to the applicable laws and regulations. The outcome of both panels is the same: to provide a resolution to the parties involved in the dispute. However, their makeups and roles are different. A securities arbitration panel is a neutral third party that hears disputes between individual parties, while a FINRA panel is an administrative body that reviews and disciplines Securities Brokers and Investment Advisors.

Related FAQs

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

Related FAQs

Related Blog Posts