FINRA Industry Arbitration Guide

Summary

This practice note provides an overview of arbitrations between and among brokerage firms and associated persons (i.e., registered representatives (brokers) and principals) under the Financial Industry Regulatory Authority, Inc. (FINRA) Code of Arbitration Procedure for Industry Disputes (Industry Code). It discusses the relevant considerations before commencing an industry arbitration, including determining whether FINRA has jurisdiction over the claim, whether the claim is arbitrable, and assessing the strength of your case. The practice note also discusses the key procedural steps in a FINRA arbitration and briefly discusses the merits of settlement and mediation of industry cases and FINRA's Simplified Arbitration Procedure. Lastly, this practice note discusses arbitration claims brought by brokers to expunge customer complaints or arbitrations from their official records.