The Financial Industry Regulatory Authority (FINRA) adheres to a strict series of procedures, rules, and regulations when it comes to arbitration hearings. If FINRA has notified you of your involvement in an upcoming investigation or arbitration, it’s natural to feel confused and uncertain about what to expect from the process. First, enlisting the assistance of an experienced securities law attorney can give you some answers and ensure that you understand your role in the arbitration process. You may also wonder how FINRA arbitrators issue their decisions and how such rulings are communicated. Here’s a brief overview of how FINRA arbitrators conclude their proceedings.
How FINRA Advises Arbitrators to Issue Decisions
FINRA advises arbitrators to notify the parties in writing. Notifying parties through an announcement at a hearing or otherwise indicating which party an arbitrator favors may lead to claims of bias. According to FINRA, the case does not conclude until the written award is published, so any statements, actions, or indications of an impending decision could be interpreted as partiality, resulting in additional costs and time-consuming litigation. FINRA encourages arbitrators to arrive at their decision and document in writing before notifying the parties to avoid such complications.
When Parties Receive Advance Notification
FINRA recognizes that a party that receives advance notice of an arbitration ruling may take steps to prevent the publication of the decision. For instance, the party may push to reopen the record (pursuant to FINRA Rule 12609/13609), alter the final decision, or seek to introduce new evidence. Additionally, the party may petition for arbitrator removal or recusal on the grounds that an arbitrator showed bias. In some cases, parties may decide to file a motion to vacate and challenge the award in court, claiming the arbitrators acted with “evident partiality.” As FINRA does not consider the arbitration process finalized until the publication of the written decision, arbitrators maintain the right to change viewpoints until that point. However, they must refrain from revealing their thought process to prevent accusations of bias.
How a Skilled Securities Law Attorney Can Help
The FINRA investigation and arbitration process can be daunting, especially when you don’t know what to expect from the process. Working with a dedicated securities law attorney is the best way to obtain the clarity, confidence, and reassurance you need to move forward. Together, you and your attorney can determine the most strategic path forward, navigating and resolving any complications along the way.
Call Judex Law LLC today at (303) 523-4022 to discuss your situation with an experienced securities law attorney.
