What is the difference between a securities arbitration panel and a FINRA panel?
The Financial Industry Regulatory Authority (FINRA) is a non-profit self-regulatory organization that monitors activities within the financial industry. Securities arbitration panels, on the other hand, are separate organizations created to resolve disputes between investors and their brokers. A FINRA panel is created and administered by FINRA itself and is a neutral third-party that decides disputes between investors and financial institutions. These panels typically make their decisions based on the evidence presented by both sides and the rules and regulations set by FINRA. A securities arbitration panel, on the other hand, is a separate independent organization created by the Texas State Securities Board to handle disputes between investors and brokers. These panels are managed by a board of commissioners from the board itself and are not affiliated with FINRA. Also, while FINRA makes its decisions based on the rules and regulations set by themselves, the securities arbitration panels in Texas make their decisions based on the Texas Securities Act, which includes specific provisions relating to arbitration of securities disputes. In conclusion, while both FINRA and securities arbitration panels are involved in the settlement of disputes between investors and their brokers, they operate according to different sets of rules and regulations and are managed and administered by different organizations.
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