This blog post may contain references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services.
Investment is one of the better ways to finally achieve financial well-being and wealth in America. Millions of people invest for this reason, including retirees who are reliant on the income that their investments bring. However, not all investment opportunities are created equal. Unfortunately, there are individuals and businesses that prey upon those looking to make an investment. If an investor is wronged by another party in the transaction, they may consider hiring a lawyer who specializes in FINRA arbitration.
Before hiring a lawyer with specializations in FINRA arbitration , investors should be aware of what type of case the attorney handles under this specialty. The Financial Industry Regulatory Authority (FINRA) is an agency which regulates brokers and brokerage firms doing business within its jurisdiction. It also acts as a quasi-judicial body which hears cases involving member firms or brokers accused of violating securities laws or regulations.
Investors who have been wronged can file a claim against the brokerage firm or advisor. After an investigation, FINRA will make a ruling against said party. However, if the investor is still dissatisfied with the ruling, it is possible to take the matter to civil court. This process requires hiring an attorney who specializes in FINRA arbitration since these attorneys are familiar with this type of case and will be able to guide potential clients through the process from beginning to end \.
Before hiring a lawyer for this type of case, there are some things that investors should ask themselves. Will hiring this person improve their chances of winning? The answer isn’t always yes , but having someone at your side who knows what they’re doing cannot hurt your chances.
Become an Insider
When Should You File a FINRA Complaint?
Many investors who have done their due diligence and opened a brokerage account with financial firms may believe that they will never need to file an official complaint. Unfortunately, this is not the case. Even if you’re happy with your broker , it’s important to file complaints when something goes wrong \.
It doesn’t matter how big or small the grievance is; making sure that both FINRA and the Securities and Exchange Commission (SEC) know about your issue can be beneficial in protecting other potential customers from falling victim to similar predicaments in the future. Whether you feel like your broker made false promises or failed to disclose fees on certain transactions, it’s vital that you report what happened . Not only will this make it easier for you to get results , but it will make it easier for others in the future.
On top of protecting potential investors, FINRA claims can help you get what you deserve from your financial firm. Whether this means getting your money back or simply filling to prevent the same thing from happening again, there are hundreds of people who visit FINRA every year looking to take action against their brokerage firms due to issues like fraud and mishandling accounts . Of these cases , 83% result in some form of resolution (i.e., money returned or brokers fired). While each case is different, if you find yourself in a situation where your broker hasn’t done right by you, don’t hesitate to file a formal complaint with both FINRA and the SEC for additional protection.
The FINRA Arbitration Process
If an investor decides to hire a lawyer who specializes in FINRA arbitration, it is imperative that he or she knows the ins and outs of the process. Essentially, when an individual files a complaint against his or her broker or brokerage firm with FINRA, they will conduct an investigation within 90 days. During this time , the lawyer representing the investor should be diligent in obtaining evidence to support their case . These can include anything from business records to recorded phone calls between parties involved in the dispute .
After the investigation has been completed, if FINRA finds that there was wrongdoing on behalf of either party, both parties are informed. The person filing the claim then has 30 days to request remedies (i.e., what needs to happen for them to come out of the situation on top). The party being accused then has another 30 days to accept or reject the remedy. If said person rejects it, FINRA will make a ruling.
In some cases, if either party is not satisfied with the ruling by FINRA, they may request arbitration. This requires hiring a lawyer who specializes in this area of law to represent them during the process. In most instances, investors must pay these fees. However, there are certain firms that cover these costs for their clients as a courtesy.
After winning an arbitration case, those who hired lawyers specializing in FINRA arbitration can recoup attorney’s fees and court costs incurred during the proceedings. They may also be reimbursed for their loss of income, mental distress and any other damages. Investors who are looking to recover money through an arbitration claim should consider hiring a lawyer who specializes in FINRA arbitration. Not only will this person help them navigate the process, but they will give them peace of mind knowing that they have someone by their side advocating on their behalf during what is likely to be a difficult time.
When Should You Hire a FINRA Lawyer?
As mentioned above, if you are involved in a situation where your broker mishandled your account or made false promises to win over your business, it’s best to do what you can to make sure this never happens again. While many brokerage firms have a reputation of success and trustworthiness, there are some that may take advantage of their clients , especially those who aren’t as knowledgeable about the stock market. This is why it’s crucial that investors do what they can to protect themselves .
If an investor has considered hiring a lawyer who specializes in FINRA arbitration, he or she probably feels pretty confident filing claims against his or her brokerage firm for something like fraud. However , no matter how unjustified investors feel the actions of their brokers were, it’s important to understand the process before moving forward.
The FINRA arbitration hearing is similar to that of a court trial, in which both sides are heard equally, but there are several key differences. Unlike in court , if one side does not show up for the proceedings , it has no bearing on how the case will be ruled. However , unlike rulings made by judges, FINRA arbitrators make their decisions based on their own interpretation of what they learned during the investigation . This means that even if you feel confident in your arguments, things may still turn out differently than you expected.
While this article has given an overview of what individuals should know about hiring lawyers specializing in FINRA arbitration, it is just that: an overview. For more detailed and specific information, anyone considering this route should contact a lawyer in their area who specializes in this area of law.
Editorial Disclaimer: The editorial content on this page is not provided by any of the companies mentioned and has not been endorsed by any of these entities. Opinions expressed here are author's alone
The content of this website is for informational purposes only and does not represent investment advice, or an offer or solicitation to buy or sell any security, investment, or product. Investors are encouraged to do their own due diligence, and, if necessary, consult professional advising before making any investment decisions. Investing involves a high degree of risk, and financial losses may occur.