The Financial Industry Regulatory Authority (“FINRA”) is a not-for-profit self-regulatory organization authorized by the U.S. Congress “to protect America’s investors by making sure the broker-dealer industry operates fairly and honestly.”
FINRA is overseen by the U.S. Securities and Exchange Commission (“SEC”).
As of February 12, 2019, FINRA supervises 3,712 broker-dealer firms and 629,112 brokers.
According to FINRA’s website, “FINRA operates the largest securities dispute resolution forum in the United States, and has extensive experience in providing a fair, efficient and effective venue to handle a securities-related dispute.”
As explained on FINRA’s Arbitration Overview page:
Arbitration is an alternative to litigation or mediation in order to resolve a dispute. Arbitration panels are composed of one or three arbitrators who are selected by the parties. They read the pleadings filed by the parties, listen to the arguments, study the documentary and/or testimonial evidence, and render a decision. The panel’s decision, called an “award” is final and binding on all the parties.
FINRA’s Overview page adds that:
Arbitration is similar to going to court, but is usually faster, cheaper and less complex than litigation. It is a formal alternative to litigation in which two or more parties select a neutral third party, called an arbitrator, to resolve a dispute. The arbitrator’s decision, called an award, is final and binding.
Requirements To Become A FINRA Arbitrator
To be certified as a neutral FINRA arbitrator, applicants must:
- complete a lengthy application;
- pass a background check;
- be approved by the Neutral Roster Subcommittee of the National Arbitration and Mediation Committee (NAMC);
- complete FINRA’s Basic Arbitrator Training Program;
- pass FINRA’s basic arbitrator examination with a score of 80% or higher;
- complete FINRA’s Expungement Training Program; and
- pass FINRA’s expungement examination with a score of 80% or higher.
A neutral FINRA arbitrator is not an employee of FINRA. A neutral FINRA arbitrator is an independent contractor.
* * *
As an SEC whistleblower law firm, The Pickholz Law Offices has represented employees, officers, and others in SEC whistleblower cases involving financial institutions and public companies listed in the Fortune Top 10, Top 20, Top 50, Top 100, Top 500, and the Forbes Global 2000. We were the first law firm ever to win an SEC whistleblower award for a client on appeal to the full Commission in Washington, an achievement that Inside Counsel magazine named one of the five key events of the SEC whistleblower program.
For more information about The Pickholz Law Offices, you can click on any of the links in the margins of this page. If you would like to speak with an SEC whistleblower lawyer, please feel free to call Jason R. Pickholz at 347-746-1222.
The above information is not and should not be construed as providing legal advice. It is not and should never be considered as a substitute for consulting with your own lawyer. The use of this web site or this page does not constitute or create any attorney-client, fiduciary, or confidential relationship between The Pickholz Law Offices LLC and/or the owners/operators of this web site, and anyone using this web site, or anyone else. The information contained on this website is for informational purposes only. The content of this web site may not reflect current developments. Prior results do not guarantee a similar outcome. Results of prior cases or matters contained on this web site are not indicative of future results or outcomes, and should not be taken as a prediction, promise, or guarantee of any future result or outcome. No one who accesses this web site should act or refrain from acting based on anything contained on this web site. For additional terms and conditions governing the use of this web site, please click on the “disclaimer” link at the bottom of this page or click here.