Understanding Motions to Dismiss in FINRA Arbitration

If the Financial Industry Regulatory Authority (FINRA) informs you that you’re under investigation, it’s natural to have several questions and concerns about how this will impact your future and your career. Enlisting the assistance of a knowledgeable securities law attorney is the best way to move forward with confidence, from the initial investigation to, if necessary, FINRA arbitration. If the matter goes this far, is it possible for the panel to ultimately dismiss the case? Let’s take a look at the circumstances in which the FINRA arbitration panel may act on a motion to dismiss.

FINRA’s Grounds for Granting a Motion to Dismiss

FINRA’s rules and regulations are pretty strict in allowing an arbitration panel to grant a motion to dismiss. Essentially, to honor such a request, the panel must determine any the following: (1) the non-moving party had already released the claims by signing a settlement or written release; (2) the moving party has no association with the accounts, securities, or conduct at issue; or (3) the non-moving party has already brought a claim pertaining to the same dispute against the same party, which was fully adjudicated and resolved in an order, judgment, award, or decision. Additionally, a party may file a motion to dismiss based on time limitations. Other than these four grounds, arbitrators may not grant these requests.

FINRA Arbitration vs. Traditional Court Proceedings

FINRA’s rules governing the arbitrators’ ability to grant motions to dismiss are much stricter than those in traditional court proceedings. In a traditional court proceeding, the parties have a longer timeline during which to argue the substantive bases for their cases, while FINRA’s rules require that parties may only request a motion to dismiss in four particular circumstances. Discuss your situation with an experienced securities law attorney to determine whether one of these options is appropriate for your case.

How an Experienced Securities Law Attorney Can Help

Not only does FINRA adhere to strict rules regarding motions to dismiss, but a party may face significant consequences for filing an invalid or irrelevant motion to dismiss. Before you move forward, it’s essential to talk through your options with a trusted securities law attorney to ensure your best interests remain as protected as possible. FINRA investigations and arbitrations can be stressful and challenging to navigate, so enlist the support of an attorney to answer your questions, address your concerns, and help you proceed with greater confidence.


If you need assistance with an upcoming FINRA investigation or arbitration, call Judex Law LLC today at (303) 523-4022 to get started with a dedicated securities law attorney.

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