<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "This article was co-authored by FINRA staff and The PIABA Foundation."data-reactid =" 22 ">This article was co-authored by FINRA staff and the PIABA Foundation.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The vast majority of interactions between investors and professionals of the However, sometimes the relationship does not go as planned and the situation can not be solved by contacting your company or broker directly. arbitration or mediation. "data-reactid =" 23 "> The vast majority of interactions between investors and investment professionals are positive, but sometimes the relationship does not go as planned and the situation can not be resolved by communicating directly In such a situation, you may find yourself considering arbitration or mediation.

There are many factors to consider when you engage in these pathways, one of them being the need to hire a lawyer to help you.

A lawyer who represents you during an arbitration or mediation process can provide experience, guidance and advice. Brokerage firms are usually represented by a lawyer in an arbitration proceeding. So, even if you choose not to hire a lawyer, there may be a representative of the firm or individual on the other side.

Fundamentals of Securities Arbitration

Arbitration appears apparent in court proceedings, but is generally faster, less expensive and less complex than a dispute. This is a formal alternative to litigation: two or more parties choose a neutral third party, called an arbitrator, to resolve a dispute.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The process of arbitration goes something like this FINALLY An arbitrator or panel (composed of three arbitrators) will listen to the arguments put forward by the parties, consider the testimony or documentary evidence, and render a decision. priceis final and binding and all parties must comply with the award. FINRA does not have an appeal process allowing a party to challenge a sentence. However, under federal laws and state laws, a court may hear a motion to quash a party's decision. "Data-reactid =" 28 "> The refereeing procedure takes place in this way.A referee or FINRA formation of three referees) will listen to the arguments presented by the parties, will consider the testimonial or documentary evidence, and then The decision of the arbitrator, called the award, is final and binding and all parties must abide by it FINRA does not have an appeal process allowing a party to challenge an award However, under federal and state laws, there are limited grounds for a court to hear a party's motion to set aside the sentence.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The size of the request will determine the mode. Arbitration Claims over $ 100,000 require an in-person hearing, decided by a panel of three arbitrators, one presiding at the hearing Lesser claims up to $ 50,000 can be decided by a single arbitrator one of the following cases: three waysa regular hearing where the evidence is presented in person; a telephone hearing incorporating many aspects of a standard arbitration hearing; or a "paper" hearing in which an arbitrator makes a decision based solely on the documents submitted. "data-reactid =" 29 "> The magnitude of the request will determine the functioning of the arbitration process. Hearing of a person appointed by a group of three arbitrators, one presiding A single arbitrator may decide on less important claims, in one of three ways: a regular hearing at which evidence is presented, a telephone hearing including many aspects of the hearing. a standard arbitration hearing, or a "paper" hearing in which an arbitrator makes a decision based solely on the submitted documents.

Rent or not rent

The FINRA Code of Arbitration Procedure states that parties have the right to be represented by counsel at any stage of the arbitration proceedings. Here are some things to consider when trying to decide to hire a lawyer to represent you in arbitration or securities mediation proceedings.

  • The process governing the arbitration procedures will probably be unknown to you. The hiring of an experienced lawyer in these areas could comfort you and help you present your case appropriately to the referees.
  • Arbitration can be faster, cheaper and simpler than a dispute, but some arbitrations involve complex legal and regulatory issues or large claims for damages. You could benefit from legal advice if your case falls into these categories.
  • A lawyer can provide advice even before the arbitration process begins. An experienced lawyer can help injured parties determine if their arbitration request is viable. This can be essential so that the parties do not lose money or time to file a case that has little chance of success.
  • FINRA provides both parties with identical lists of randomly generated proposed referees as well as a detailed history of each referee. A lawyer can help you determine which arbitrators may be better suited to your case.
  • The parties to an arbitration can come to the forum with a lot of emotion about what has happened so far. A lawyer can serve as an independent third-party representative and provide legal advice to help you achieve your goals.
  • Speaking to a lawyer is confidential and protected by professional secrecy. This means that your lawyer is not allowed to discuss what you are telling him or her with anyone, and that your statements will be kept between you two. The attorney-client privilege helps both parties better understand the strengths and weaknesses of the case and builds a relationship of trust that can lead to better direction and better decision-making.
  • As noted above, a lawyer will generally represent any investment firm or professional designated as a sponsor in your case. Hiring a lawyer means that you will be dealing with the other party through your lawyer, which may help you avoid mistakes that could be detrimental to your own interests.
  • <p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "A word about non-proxy representatives or NAR. Although NARs are an alternative to attorney representation, NARs are not subject to the same professional rules or guidelines, or the requirements of malpractice insurance. Investors may also be unaware of the lack of such protections and, therefore, may not properly evaluate the benefits and costs of representation by NAR companies. "Data-reactid =" 40 "> A Word about Non-Proxy Representatives or NARs Although NAR companies are an alternative to attorney representation, NAR companies are not subject to the same rules and professional guidelines, nor the malpractice insurance requirements, the benefits and costs of representation by NAR companies.

    Find a lawyer

    <p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Whether you decide to hire a lawyer or not , a good resource to consult is Investor's Guide to Litigation in the Securities Industry published by the PACE Law School Investor Rights Clinic. "data-reactid =" 42 "> Whether you decide to hire a lawyer or not, a good resource to consult is Investor's Guide to Litigation in the Securities Industry published by the PACE Law School Investor Rights Clinic.

    If you decide to hire a lawyer, the first step is to locate qualified candidates. The Securities and Exchange Commission (SEC) offers the following tips:

  • Talk to your lawyer, if you have one, to find out about your situation and to find out if a lawyer specializing in securities arbitration or litigation could benefit from it.
  • Contact the American Bar Association and the Public Investors Arbitration Bar Association (PIABA). Both allow you to search in their directories of member lawyers someone who represents you in your area. PIABA members have specific experience representing investors in litigation with the securities industry. You can also check with bar associations in your state, county or city.
  • If you can not afford a lawyer, some law schools offer legal representation through securities arbitration clinics. Under the supervision of professors, law students provide legal services and advice on the process of arbitration in disputes between individual investors and their investment professionals.
  • Ask these questions

    Choosing the right lawyer is a personal decision that is often specific to your own needs and preferences. It's a good idea to interview more than one lawyer and ask the following questions:

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Do you have experience as an investor representative in securities arbitrations? The experience counts. Representation by a person with specialized legal knowledge of the investments that have been sold to you and the procedures that apply to the arbitration process are important. Ask how long the lawyer has been in business and how many securities arbitrations he has dealt with. "Data-reactid =" 50 ">Do you have experience as an investor representative in securities arbitrations? The experience counts. Representation by a person with specialized legal knowledge of the investments that have been sold to you and the procedures that apply to the arbitration process are important. Ask how long the lawyer has been in business and how many securities arbitrations he has dealt with.

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "How will you represent my interests? Injured investors generally do not understand, or can not articulate, the extent of their harm. An essential element of effective representation is the ability of your lawyer to inform you, the opposing counsel and, ultimately, the arbitration panel of any underlying investments or the shares in question. Your lawyer should also be expected to define the regulatory standards that your investment professional is required to follow, and how these standards have been breached. "Data-reactid =" 51 ">How will you represent my interests? Injured investors generally do not understand, or can not articulate, the extent of their harm. An essential element of effective representation is the ability of your lawyer to inform you, the opposing counsel and, ultimately, the arbitration panel of any underlying investments or the shares in question. Your lawyer should also be expected to set the regulatory standards that your investment professional is required to adhere to, as well as the manner in which these standards have been violated.

    The story continues

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "How are you paid? Lawyers are paid in different ways. Many lawyers specializing in representing investors in securities arbitrage make contingency fees. This means that the attorney is willing to advance his time with the hope and hope of recovering money from the investment firm or the professional. Read the compensation agreement submitted by the attorney to make sure you understand the terms. "Data-reactid =" 56 ">How are you paid? Lawyers are paid in different ways. Many lawyers specializing in representing investors in securities arbitrage make contingency fees. This means that the attorney is willing to advance his time with the hope and hope of recovering money from the investment firm or the professional. Read the lawyer's compensation agreement to make sure you understand the terms and conditions.

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Visit FINRA website for more information on the arbitration process. "data-reactid =" 57 "> Visit the FINRA website for additional information on the arbitration process.

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Subscribe to FINRA The Alert Investor Information Bulletin For more information on savings and investment. "data-reactid =" 58 "> Subscribe to the FINRA newsletter, The Alert Investor, to learn more about saving and investing.

    <p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "FINRA is dedicated to investor protection and market integrity. It regulates an essential part of the securities industry – the brokerage firms that do business with the public in the United States. FINRA, overseen by the SEC, drafts rules, reviews and enforces compliance with its rules and federal securities laws, registers securities brokerage staff, provides training and training, and informs the public investor. In addition, FINRA provides oversight and other regulatory services for equity and option markets, as well as for market information and other public services in the industry. FINRA also administers a dispute resolution forum for investors, brokerage firms and their registered employees. For more information, visit www.finra.org."data-reactid =" 59 ">FINRA is dedicated to investor protection and market integrity. It regulates an essential part of the securities industry – the brokerage firms that do business with the public in the United States. FINRA, overseen by the SEC, drafts rules, reviews and enforces compliance with its rules and federal securities laws, registers securities brokerage staff, provides training and training, and informs the public investor. In addition, FINRA provides oversight and other regulatory services for equity and option markets, as well as for market information and other public services in the industry. FINRA also administers a dispute resolution forum for investors, brokerage firms and their registered employees. For more information, visit www.finra.org.