How to Prepare for an Upcoming FINRA Arbitration Hearing

As a professional in the financial industry, receiving notification from the Financial Industry Regulatory Authority (FINRA) that another party has filed a complaint against you can be overwhelming. You’ll likely have several questions about what this means and what steps you need to take to resolve this issue. Remember, you don’t have to go through this stressful process on your own—working with an experienced securities law attorney can give you the reassurance and support you need to navigate FINRA arbitration successfully. Here are some tips to help you prepare for what lies ahead.

Responding to a Claim

When a party files a Statement of Claim with FINRA, the arbitration process begins. The claimant includes the details of the alleged dispute and specifies the relief they seek from the respondent. Once FINRA receives the claim, it will serve the Statement of Claim on the respondent. If you receive a Statement of Claim, you have 45 days to file an Answer and signed Submission Agreement with FINRA. As soon as you receive the Statement of Claim, you should contact a securities law attorney to discuss your situation. The sooner you reach out, the more time you will have to prepare an effective strategy for approaching the arbitration.

Prehearing Conferences and Discovery

Once the arbitration panel has been established, you’ll participate in an Initial Prehearing Conference (IPHC). This meeting typically occurs over the phone, and it’s the first time that the parties and the arbitrators come together to schedule evidentiary hearings, set discovery deadlines, determine motion and briefing deadlines, and address other relevant information. As the process moves forward to discovery, your attorney will decide when to make discovery requests and respond to or object to discovery requests from the opposing party.

Attending the Arbitration Hearing

Usually, the hearing will occur at a convenient location—often in a venue that’s closest to the investor’s residence at the time of the alleged incident that prompted the dispute. Due to the impact of COVID-19, however, FINRA has allowed arbitrations to take place over Zoom instead of an in-person meeting. Whether the hearing takes place virtually or in-person, it will follow the same general format: presenting testimony and evidence, allowing for direct and cross-examinations, presenting exhibits, and delivering closing statements. Remember, your attorney will be there at every step of the process to answer your questions, address your concerns, and advocate for a favorable outcome.


Call Judex Law LLC today at (303) 532-4022 to learn more about how experienced securities law attorney Tosh Grebenik can help you successfully navigate a FINRA arbitration.

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