In recent years, the Financial Industry Regulatory Authority (FINRA) has ushered in several new rules and amendments in order to support its mission “of promoting investor protection and ensuring market integrity.” Professionals in the securities industry may feel somewhat overwhelmed by the sheer number of changes and updates, which can be challenging to keep up with on a daily basis. Every quarter, FINRA releases its newsletter, The Neutral Corner, that “provides arbitrators and mediators with current updates on important rules and procedures within securities dispute resolution.” According to the latest issue, the number of arbitration case filings has decreased considerably between 2024 and 2023. Moreover, the first few months of 2025 reflect a similar trend, as the number of FINRA-related arbitration case filings has also remained relatively low. So, what does this information mean for financial advisors and securities firms? Let’s take a closer look at the latest FINRA case filings and trends, the top controversy types involved in customer arbitrations, and other relevant information that’s worth exploring as we move forward into 2025. As a financial advisor in need of trusted and effective legal counsel, you can always enlist the guidance and support of a highly experienced and caring securities law attorney and FINRA defense lawyer to support you along the way.
What FINRA’s Virtual Arbitration Data Indicates About 2025
First, let’s take a look at the data that FINRA reported regarding virtual hearings during the first two months of 2025. During this period, 492 customer-related contested motions for virtual hearings were handled by FINRA. Of this total, 306 (36 percent) were granted, 183 (37 percent) were denied, and three cases remained open as of February 2025. While a total of 226 intra-industry contested motions for virtual hearings arose during this period, FINRA’s Dispute Resolution Services (DRS) granted 172 (76 percent), denied 53 (24 percent), and left one case open. Moreover, FINRA states that a total of 2,713 arbitration cases “have conducted one or more hearings via Zoom (885 customer cases and 1,828 industry cases)” since the postponement of in-person hearings. Although virtual arbitration services remain a valuable and useful option for many parties, the overall decrease in case filings indicates that fewer customer and intra-industry hearing requests are occurring than in previous years.
Decrease in New Case Filings Between 2024 and 2025
While we are only a few months into 2025, a comparison between these initial two months and the same period the year before shows a five percent decrease in the number of new case filings received by FINRA. In early 2024, a total of 414 new cases were filed (267 of which were customer, 147 of which were intra-industry). In contrast, the same period of 2025 saw a total of 392 new cases filed, 253 (65 percent) of which were customer-related cases, and 139 (35 percent) of which pertained to intra-industry. FINRA closed a total of 574 cases in 2024, compared to 447 cases closed in 2025. Another piece of information worth noting is that the turnaround time (in months) increased from 12 months to 13.4 months between 2024 and 2025, but the time for processing regular hearing decisions decreased from 17.3 months in 2024 to 16 months in 2025. Moreover, the data from both 2024 and 2025 shows another clear drop from the same two-month period in 2023, when the total number of new cases filed was 457. Generally speaking, 2023 was a year in which more cases were filed over the twelve-month period (3,382), up from the two previous years (2,671 cases filed in 2022 and 2,893 cases filed in 2021).
Top Controversy Types Involved in Customer Arbitrations
So far, FINRA has noted that the majority of customer arbitration cases filed in 2025 involve two top controversy types: Breach of fiduciary duty (158 cases) and negligence (151 cases). Other notable controversy types pertaining to customer arbitration case filings include misrepresentation (142 cases), failure to supervise (130 cases), omission of facts (123 cases), breach of contract (118 cases), suitability (107 cases), fraud (91 cases), breach of regulation BI (67 cases), manipulation (49 cases), violation of Blue Sky laws (41 cases), unauthorized trading (23 cases), elder abuse (22 cases), errors-charges (19 cases), and churning (10 cases). When compared to the 2024 data from the same period, we see fewer breach of contract claims in 2025—but the overall rankings of these controversy types remains fairly steady.
Comparing Controversy Types in Intra-Industry Arbitrations
When it comes to intra-industry arbitration cases, the top controversy type reported during the first two months of 2025 is breach of contract (57 cases). Trailing behind this top controversy type are promissory notes (25 cases), compensation (18 cases), breach of fiduciary duty (14 cases), raiding disputes (10 cases), libel or slander on form U-5 (9 cases), libel or defamation (9 cases), commissions (8 cases), wrongful termination (7 cases), fraud (2 cases), negligence (2 cases), underwriting (2 cases), discrimination or harassment (1 case), misrepresentation (1 case), and partnerships (1 case). These rankings remained fairly consistent with the same period from 2024, with the exception of the number of cases involving compensation as a controversy type becoming more common in 2025.
Talk to a Trusted and Experienced FINRA Defense Attorney Today
As a professional in the securities industry, it can be hard to keep up with the seemingly endless updates to FINRA’s rules and regulations. If you are struggling with troublesome customer dispute information or you are preparing for an upcoming FINRA arbitration, it’s worth enlisting the help of a trusted and experienced securities law attorney who can provide you with the customized legal guidance you need to move forward with confidence. Working with an attorney representing financial advisors is the best way to maximize your chances of obtaining a fair and favorable outcome.
If you have questions about FINRA’s arbitration process or you wish to know more about the changing landscapes of securities law and regulatory compliance, Judex Law, LLC, is here to assist you. Please contact our office today at (303) 523-4022 to get started with a highly qualified and friendly securities law attorney who specializes in representing financial advisors and member firms.