FINRA Small Claims Securities Arbitration Process

On September 17, 2018, FINRA introduced a Special Proceeding process within Simplified Arbitration. If you have a claim valued at $50,000 or less, exclusive of interest and expenses, that was filed on or after September 17, 2018, your case may be heard as a Special Proceeding.

• No cross-examinations take place in a Special Proceeding.
• By default, your case will be heard on a conference telephone call recorded by FINRA.
• Unlike in-person hearings, the call continues recording during breaks.
• You can request an in-person hearing.
• The arbitrator will have 3 hours to ask questions of both parties.
• The proceeding is limited to maximum 2 sessions, exclusive of prehearing conferences.
• The proceeding has a time limit of maximum 8 hours.
• The honorarium cost for the arbitrator hasn’t changed ($350).
• You can raise objections.
• The timeline for scheduling of hearings is faster (by 5 months) than other Simplified Arbitration options.
• The Discovery rules are the same.

The claimant and the respondent (s) will dial in to the conference call. The arbitrator is responsible for keeping track of the time.

The claimant and the respondent(s) will each have up to 2 hours to present their opening statements and their case-in-chief. As per the norm, claimants begin followed by the respondent(s).

At the close of your 4 hours, the arbitrator will have an opportunity to ask questions. The arbitrator’s time is limited to 3 hours and the arbitrator may choose to cede some of their time to the parties when necessary.

The last hour of the proceeding is allotted to rebuttals and/or closing statements. Each party will have 30 minutes.

Silver Law can help put mismanaged money back in your wallet. Every dollar counts. Have you put off recovering losses for fear of a long acrimonious legal battle? Or does your prospective award seem too small to chase? Rest assured that Silver Law group can facilitate fast recovery via a Special Proceeding.

FINRA designed Special Proceedings to create a cost-effective and convenient option for claimants and respondents. Because of the time constraints on a Special Proceeding, parties can expect a faster hearing and more expeditious award.

If your case is sensitive, you may be reassured that you will not face questioning or direct engagement with the opposing party. The Special Proceeding process affords a unique opportunity to focus on telling your story free from intrusive and adversarial questions by the opposing party. Silver Law can ensure your story is heard in a Special Proceeding.

How do I choose a Special Proceeding?

If your case falls within the Special Proceeding rules, your hearing will be held as a Special Proceeding by default. You will be prompted to choose one of three options, including a Special Proceeding, when filing your Statement of Claim online. If you are a respondent, you will be advised of the Special Proceeding in the IPHC Script. All parties in Special Proceedings will have advance knowledge of the Special Proceeding requirements.

Can I still have an in-person hearing?

Yes. Parties can mutually agree to an in-person hearing.

What if you dispute the opposing party’s submissions?

Either party will have an opportunity to submit motions on discovery to the Arbitrator for consideration.

How are exhibits handled?

Parties will need to file their exhibits with FINRA before the Special Proceeding, so that FINRA may send the exhibits to the arbitrators.

Are my chances for recovery better in a Special Proceeding?

A Special Proceeding affords the same impartial opportunity as other Simplified Arbitration options to present your evidence for consideration. Information provided herein does not constitute a legal opinion. For case evaluation, please contact our office at [hyperlink].

Is the arbitrator impartial?

Yes. Although the arbitrator will ask questions of both parties, the arbitrator must remain impartial and neutral.

Can I seek an expungement of defamatory information?

You can make arguments for expungement during the Special Proceeding within your allotted 2 hours of opening statements, or 30 minute closing rebuttal.

Is the cost for the arbitrator the same?

Yes. The honorarium for the arbitrator is the same.