When customers have an issue with a securities firm or individual financial advisor, they have the right to file a claim with the Financial Industry Regulatory Authority (FINRA). This not-for-profit, self-regulatory organization ensures that investors are sufficiently protected from financial professionals or member firms acting in bad faith or failing to uphold their fiduciary duties. FINRA’s Dispute Resolution Services (DRS) provide a forum for customers and firms or advisors to resolve their disputes. The claimant and the respondent often hire legal counsel to guide them through the FINRA arbitration process, which follows a series of steps from the filing of the claim to the rendering of the award by the neutral, third-party panel of qualified arbitrators. According to FINRA, “If the case settles, an arbitration will last around one year. If the case goes to hearing, an arbitration typically takes 16 months.” As a financial advisor named as the respondent in a FINRA arbitration matter, this timeline can seem daunting and stressful. Enlisting the support of a highly experienced and knowledgeable FINRA arbitration attorney is the best way for you to understand what to expect during this formal process and maximize your chances of obtaining a successful outcome.
Whether you have just been named as the respondent in a FINRA claim or you are well on your way through the FINRA arbitration process, you may have questions about what to expect during these proceedings. It’s worth noting that two recently enacted FINRA rules now allow for certain qualifying parties to request accelerated processing, which shortens the timeline of the arbitration process. Let’s take a closer look at how new FINRA Rules 12808 and 13808 affect the arbitration timeline and how partnering with a knowledgeable and highly skilled FINRA arbitration lawyer can provide you with the support and guidance you need to move through this process with greater understanding and confidence.
How Does Accelerating Processing Work?
FINRA recognizes that some circumstances justify a shorter arbitration timeline. If the Director of Dispute Resolution Services (DRS) finds that an arbitration case qualifies for accelerated processing, the timeline will be condensed so that the parties can move through each step of the process more quickly. Below are some of the changes that DRS will allow to the typical timeline when a request is deemed eligible for accelerated processing.
- The Respondent will have 30 days (instead of 45) in which to serve the Submission Agreement and file a response to the statement of claim.
- The parties must respond to third-party claims within 30 days (instead of 45).
- The parties need to return Arbitrator Ranking Forms within 10 days (instead of 20) after receiving the arbitrator lists from the Director of DRS.
- In customer cases, the parties must respond to the Document Production Lists within 35 days (down from 60), unless the parties agree otherwise.
- In industry cases, the parties have 30 days (instead of 60) in which to respond to discovery requests (unless they agree otherwise).
Another change is that the panel of arbitrators overseeing the accelerated arbitration are encouraged to render an award within 10 months of the Director of DRS finding that accelerated processing applies to the case. This shortens the timeline from the typical 12 to 16 months to ten.
Who Qualifies For Accelerated Processing?
FINRA accelerated processing eligibility is outlined in the newly enacted FINRA Rules 12808 and 13808. According to FINRA Rule 12808, a party may request accelerated processing if:
- The party is at least 70 years old at the time of the request.
- The party can certify that they have received a medical diagnosis or prognosis that necessitates an accelerated processing timeline to prevent prejudicing the party’s interest in the arbitration.
It’s important to note that the party making the accelerated processing request for medical reasons does not have to disclose the details of their diagnosis or prognosis. They will be asked to obtain a certification according to the manner and form required by the Director of DRS.
How to Request Accelerated Processing For FINRA Arbitration
If you are interested in requesting accelerated processing for a FINRA arbitration matter, you can do so when initiating an arbitration action or filing an answer. To do so, you can use the Form Requesting Accelerated Processing, which can be completed and filed so that the Director of DRS can determine whether to grant this request. According to FINRA, arbitrators are encouraged “to be sensitive to accelerated processing status when scheduling hearing sessions, setting deadlines, resolving discovery disputes, and determining the reasonableness of postponements.” If the Director of DRS approves your request for accelerated processing, you can expect a shorter timeline so that the arbitration is resolved more quickly than the typical 12 to 16 months.
What Happens When an Accelerated Processing Request is Denied
Just because a party requests accelerated processing does not mean that the Director of DRS will approve it. If your request for accelerated processing is denied, you can still ask the panel of arbitrators to consider factors like the party’s age and health when scheduling hearings and establishing deadlines. The panel has the authority to listen to these factors and use them to inform their decisions, seeking to treat each case with the sensitivity it deserves.
Frequently Asked Questions (FAQs) About FINRA Arbitration Accelerated Processing
When did FINRA’s new Rules take effect?
As of March 30, 2026, eligible parties may request accelerated processing to shorten the FINRA arbitration timeline because of age or medical diagnosis and prognosis.
How Can I Request Accelerated Processing?
You can complete and file the Form Requesting Accelerated Processing. From there, the Director of DRS will review your request and determine whether you meet the eligibility requirements.
Do I need to hire a securities law attorney?
No, but working with a seasoned and experienced FINRA arbitration attorney is the best way for you to fully understand your options and maximize your chances of success.
Get Started With a Top FINRA Arbitration Lawyer Today
If you have questions about the FINRA arbitration process or you are interested in learning more about your options for resolving a customer dispute as smoothly as possible, please contact Judex Law LLC for the trusted and effective legal guidance you need. Founding attorney Tosh Grebenik has successfully defended professionals in the financial and securities industries from customer complaints and obtained expungements of wrongful complaints. Contact our Broomfield, Colorado office today by calling (303) 523-4022 to get started with a highly experienced and friendly securities law attorney.