Frequently Asked Questions and Resources
Frequently Asked Questions
How much does a FINRA arbitration cost?
You must pay a FINRA arbitration filing fee unless you can show financial hardship. Filing fees are based on the amount of the claim and range from $50 (for claims up to $1,000) to $2,250 (for claims over $5 million). FINRA also charges hearing session fees for pre-hearing conferences and the arbitration hearing, if necessary.
What is your attorney fee?
I work on a contingent fee basis, meaning that my fee is a percentage of the settlement amount or, if the case goes to hearing, a percentage of the arbitration award. If the case is not successful, there is no attorney fee.
Are there other costs involved?
There may be other costs involved, such as out-of-pocket expenses and expenses related to an expert for the preparation of damage calculations and for testimony at the hearing, depending on the complexity of the case.
Is there a deadline for filing a FINRA arbitration claim?
Yes. A claim is “not eligible for arbitration if six years have elapsed from the occurrence or event giving rise to the claim.” Also, other time limits imposed by state or federal law may apply. So, do not delay.
Where would the arbitration hearing be held?
Generally, the arbitration hearing will be held closest to where the investor lived at the time of the investment.
Don’t cases usually settle?
Historically, parties reach a settlement in about 75-80% of FINRA cases. However, it is important to approach each case as if it is going to hearing. Preparation is the key to a successful case, whether the parties reach a settlement or the case goes to hearing.
Does it matter if we are in different states?
Generally, no. Most states allow out-of-state attorneys to represent investors in FINRA arbitrations.
FINRA (Financial Industry Regulatory Authority)
FINRA is dedicated to investor protection and market integrity through effective and efficient regulation of broker-dealers. FINRA is not part of the government. The organization is a not-for-profit organization authorized by Congress to protect America’s investors by making sure the broker-dealer industry operates fairly and honestly.
PIABA (Public Investors Arbitration Bar Association)
PIABA is an international bar association whose members represent investors in disputes with the securities industry. Currently, there are members from 44 states, Puerto Rico and Japan. This page provide links to numerous consumer, federal and international agencies and websites.
Brought to you by the SEC’s Office of Investor Education and Advocacy, Investor.gov is your online resource to help you make sound investment decisions and avoid fraud. The SEC’s Office of Investor Education and Advocacy (OIEA) is dedicated to serving the needs of individual investors.
Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau (CFPB) regulates the offering and provision of consumer financial products or services under the federal consumer financial laws and educates and empowers consumers to make better informed financial decisions.
North American Securities Administrators Association (NASAA) Investor Education Library
Recognizing that education and awareness are powerful tools in the fight against investment fraud, NASAA offers a variety of investor education publications, a newsletter spotlighting new investor education initiatives and a directory of the investor education websites of the state and provincial securities regulators.