Securities Arbitration

Most disputes between investors and their brokers/brokerage firms are resolved through securities arbitration. Securities arbitration presents considerable advantages to customers. The process is quicker, cheaper and less burdensome than court litigation. Low upfront costs and fees allow attorneys working in the space to operate under contingency agreements, essentially meaning aggrieved investors pay nothing unless the attorney recovers money. Additionally, because the rules are usually streamlined in securities arbitration, disputes get resolved much quicker than in court litigation.

Investor disputes involving investments losses or other misconduct for accounts held with brokerage firms are resolved through the Financial Industry Regulatory Authority (FINRA) arbitration. Formed in August 2007, FINRA consolidated the regulatory efforts of the New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASD). Specifically, FINRA is the self-regulatory organization that oversees and resolves disputes between investors, member firms and firm employees. The Securities and Exchange Commission (SEC) oversees FINRA. FINRA has implemented rules and regulations concerning the standards of care required for the handling of customer accounts, which have been memorialized in its Code of Conduct. Accordingly, each member firm is required to adhere to these rules as a condition of FINRA membership. Failure to comply with the FINRA Code of Conduct can result in sanctions and penalties.

Investor disputes concerning investment losses for accounts managed by Registered Investment Advisors (RIAs) are resolved through different forums designated in the Investment Advisory Agreement between an investor and the RIA. Either the SEC or state regulators supervise RIAs depending on the total amount of combined assets under management. Most of the disputes concerning investments losses in RIA accounts are resolved in court or in non-FINRA dispute resolution forums, but FINRA will accept some disputes under limited conditions.

With nearly 70 combined years of practice in this field, our highly-experienced attorneys have collectively recovered hundreds of millions of dollars on behalf of aggrieved investors through the arbitration process. Our attorneys use their extensive knowledge and experience, creativity and business savvy to craft an individually-tailored approach to each client’s case in order to maximize recovery.

We have successfully prosecuted claims against brokerage firms and registered investment advisers in arbitration forums including:

• The Financial Industry Regulatory Authority (FINRA)
• The American Arbitration Association (AAA)
• Judicial Arbitration and Mediation Service (JAMS)
• National Futures Association (NFA)

At Silver Law Group, we typically handle arbitration cases on a contingency fee basis, meaning if no money is recovered from your claim, you will owe nothing to our firm for attorney’s fees. Accordingly, we only pursue claims where we believe there is a reasonably high probability of success. Contact our firm for a free consultation.