Ethics & E-Discovery During the FINRA Arbitration Process

If you receive a letter from the Financial Industry Regulatory Authority (FINRA) informing you of your involvement in an investigation, it’s natural to feel concerned about how this will impact you. If the matter proceeds to arbitration, it’s important to familiarize yourself with this process and how to prepare yourself for navigating each step. As evidence becomes increasingly electronic or digital in nature, it’s helpful to understand the existing ethical guidelines around the e-discovery process, particularly when it comes to FINRA arbitration.

FINRA Follows ABA Model Rules

FINRA looks to the American Bar Association (ABA) for a model of the ethical obligations advocates must follow. First, advocates participating in FINRA arbitrations must demonstrate competence in handling, collecting, and receiving e-evidence sources. Legal advocates must also refrain from charging unreasonable costs when performing e-discovery services. One of the most critical rules is for advocates to maintain the confidentiality of privileged information and documents involved in the e-discovery process. In some cases, FINRA arbitrations need to step in to clarify and enforce these confidentiality obligations.

Maintaining Professional Conduct During FINRA Arbitration

Other rules pertain to the professional conduct of advocates during the FINRA arbitration process. Attorneys must be open and honest with the FINRA tribunal regarding their client’s ability to find and produce electronic evidence. Additionally, the attorneys cannot unlawfully obstruct the opposing party’s access to evidence, and they may not participate in the altering, destruction, or concealment of documents having potential evidentiary value. Any of these actions could result in serious consequences and prevent the arbitration process from moving forward.

Finding the Right Securities Lawyer to Represent You

Struggling with any type of securities law issue can be daunting, especially if you risk damaging your professional career and reputation. That’s why working with the most qualified attorney is so essential. Make sure that the attorney you select understands and upholds all of their professional and ethical obligations so you can put your trust in them as the proceedings move forward. Take some time to talk to potential attorneys to get a sense of their style and approach to FINRA-related matters. Once you’ve found someone who inspires your trust, you can start moving toward your desired outcome.


Call Judex Law, LLC, today at (303) 523-4022 to discuss your issue with a trusted and experienced securities law attorney.

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