FAQ About FINRA's Specialized Arbitration Process for Claims Under $50,000

What is important to realize about the FINRA arbitration regulations is that they are constantly evolving to meet the unique demand of individuals. This is important when considering how the new regulations could potentially impact your upcoming dispute. One of the primary factors that has governed FINRA arbitration cases is the amount in controversy. Granted, there were many potential cases that were under the amount of $50,000. Due to this trend, there have been new regulations issued in order to assist those that need FINRA arbitration claims for amounts less than $50,000 and those that want to solve their disputes in the most cost-effective and efficient way possible. Review the information below to understand the answers to common FAQ's about the changes to the FINRA arbitration process for claims under $50,000.

There have been many substantive changes relating to claims that are below $50,000 in value. There has been a shift to allow more cost-effective and efficient resolutions under Rule 12800, Simplified Arbitration guidelines. One of the stipulations is that these cases have only one arbitrator and that the customer can either request a hearing or opt for a Special Proceeding, which has the potential to involve a hearing over the telephone. Traditional document production lists outlined in Rule 12506 do not apply to this rule; however, the arbitrator may choose relevant parts of the document production lists to help expedite the hearing. Should there be an increase in the amount in dispute due to findings in the proceedings making the amount above $50,000, then the arbitration will no longer be administered under these new modified rules.

If you or someone in your family has a case where they lost $50,000 or less through investor fraud, it is highly recommended to speak with an attorney to explore potential recovery of your lost investment capital even if the amount is less than $50,000. Silver Law Group is a securities and investment fraud law firm that is recognized nationwide for its success with helping investors recover their funds lost from misconduct of brokerage firms. Silver Law Group is dedicated to representing the interests of investors who have been victims of investor fraud and to help those investors recover the capital that they have lost. According to the rules set out in the securities industry, there is a possibility to recover using FINRA arbitration. We believe all defrauded investors should be able to find counsel. Our firm represents investors looking to recover in FINRA arbitration claims and the entire recovery process on a contingency fee basis. Our firm is able to take on FINRA arbitration cases including cases under $50,000. If you have questions regarding your potential for recovery or legal rights, please contact Scott Silver or the Silver Law Group for a complimentary consultation at ssilver@silverlaw.com or toll-free at (800) 975-4345.