What is "securities arbitration" and is it mandatory in my claim against my broker?

 

A: The standard new account agreement signed by investors who open an account with a securities firm include a waiver of the right to sue in courts and mandate that disputes will be resolved through securities arbitration.

Virtually all securities arbitration claims are administered by the Financial Industry Regulatory Authority, known as FINRA (formerly the NASD). Rather than litigating a case in court, the case is presented before an arbitration panel. In an Ohio securities arbitration case, the panel typically consists of three arbitrators. Both parties present evidence and make arguments, in much the same way as a case is handled in court before a judge. In an arbitration case, however, the arbitrators' ruling is binding, which means it cannot be reviewed by the court except in certain limited circumstances. The Uniform Code of Arbitration governs the rules of the arbitration process. For additional information, please view our informational videos on the securities arbitration process or contact our Ohio securities arbitration attorneys at 1.866.827.6537.