Understanding the Role of a FINRA Arbitration Chairperson

As a financial advisor, you may become overwhelmed or anxious at the thought of receiving notification from the Financial Industry Regulatory Authority (FINRA) of an investigation or arbitration. Before you succumb to thoughts of losing your job or professional reputation, reach out to a knowledgeable securities law attorney to discuss your options. If the matter proceeds to FINRA arbitration, your attorney will help you prepare to navigate the process as smoothly and effectively as possible. In the meantime, here’s a bit of background on how FINRA arbitrators typically approach the process.

They Must Ensure That Due Process is Served

FINRA arbitrators must view each matter from an impartial point of view. They may not show bias or favor one party over another. A core principle of FINRA arbitration is to ensure that due process is served, so arbitrators should approach each dispute with respect for all involved parties. Any sign of bias or favoritism can jeopardize the integrity of the case, so work with your attorney to take swift action against any potential exhibitions of prejudice against you.

A FINRA Arbitration Chair Serves as the Panel’s Guide

A FINRA arbitration panel is usually made up of three individuals. The FINRA arbitration chairperson occupies the central seat and serves as the primary arbitrator on the panel. This individual will guide the other arbitrators through the process, but the ultimate decision is up to all three arbitrators. While you and your attorney should recognize the authority of the entire arbitration panel, it can be helpful to recognize the slightly more authoritative role of the arbitrator chairperson.

Working Toward Compromise

Ultimately, the panel’s decision is made together. All three arbitrators work together to reach a final determination. The panel of arbitrators will explore many viewpoints and options, eventually moving toward an outcome they all support. As a financial advisor involved in FINRA arbitration, it’s natural to feel concerned about the panel’s ruling. However, you do not have to go through this challenging process alone. Enlisting the support of an experienced and understanding securities law attorney is the best way to ensure you have the tools and strategies you need to wade through these proceedings with confidence.


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

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