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FINRA arbitration attorney in California

The Financial Industry Regulatory Authority or FINRA is an independent, non-profit, nongovernmental organization that writes as well as enforces the rules that govern registered brokers and broker-dealer firms within the U.S.

FINRA is the single largest independent regulatory body for securities firms operating in the country. Its mission is to protect investors by regulating the securities industry. The organization regulates the trading of corporate bonds, equities, securities futures, and options.

If you, as an investor, have lost a significant amount of your portfolio which you believe to be the direct or indirect result of a violation of common-law, securities laws, FINRA’s rules and/or SEC regulations, you can deal with your issue through FINRA arbitration.

The first step in the arbitration process is filing a “Statement of Claim” which outlines the relevant details of the issue, and must include the name or name of the firm and/or brokers that were involved, the pertinent dates, and the relief that you, the claimant, are requesting. Other required forms, including a Submission Agreement, need to be filed, and there are fees that must be paid when filing your claim.

In order to have a successful outcome to your claim, your FINRA arbitration should be managed by an arbitration attorney. The Leo Law Office, a California securities attorney, will evaluate your case to determine whether you have a valid claim against your broker or financial advisor.

Suspensions, fines, and disbarment

FINRA has the power to take disciplinary actions against investment companies and registered individuals that violate the rules of the industry. In 2019, the organization initiated 854 disciplinary actions, levied fines of $39.5 million in total, and ordered the restitution of $27.9 million to investors.

FINRA also expelled six member firms and issued suspensions for an additional 21, and ordered the disbarment of 348 individuals from the securities business as well as suspending another 415 in 2019. That same year it referred 827 fraud and insider trading cases to the SEC and other governmental agencies for prosecution.

Some common examples of broker misconduct include allegations of:

  • Breach of fiduciary duty
  • Negligence
  • Misrepresentations, omissions, and/or failing to disclose risk
  • Unauthorized trades
  • Breach of contract
  • High pressure sales tactics
  • Churning

Many arbitration cases end with a settlement between the parties involved through direct negotiation or mediation which can help prevent any damage to the reputation of the person or parties named in the claim.

However, historically, about 50% of claimants have received some type of monetary award in arbitration claims that go to a final decision each year.

Trusted commercial dispute attorney

If you believe that you have been a victim of fraud, negligence, or some other type of misconduct on the part of your broker and/or investment firm and want to initiate a FINRA arbitration claim, contact Shawn Leo, commercial dispute attorney, at the Leo Law Office, APLC in San Diego, California.