The Financial Industry Regulatory Authority (FINRA) releases quarterly reports that include the latest statistics from the Dispute Resolution Services (DRS). According to FINRA, DRS “helps investors and firms resolve securities-related disputes through arbitration and mediation. We provide a fair, efficient and effective forum for resolving disputes involving brokerage firms and their brokers.” As a financial advisor or securities professional, it’s helpful to familiarize yourself with the latest FINRA arbitration statistics to better understand how current trends could affect an upcoming arbitration case. Moreover, the recent implementation of numerous rule changes is still reshaping and affecting the number of arbitration case filings, as shortened timelines, increased requirements imposed on arbitration panels, and other amendments are impacting the overall arbitration process. When these newly adopted amendments first took effect, there was a notable decrease in the number of expungement filings. However, the recent statistics released by FINRA indicate that the number of arbitration case filings for both customer and intra-industry disputes have risen between January 2026 and May 2026.
Financial advisors and member firms can benefit from reviewing some of the key takeaways from the most recently reported arbitration case filings and trends. If you are concerned about an upcoming dispute or you have questions about navigating FINRA’s arbitration process, it’s highly recommended that you work with an experienced and trusted securities law attorney to help you move through this process with greater understanding and clarity. Let’s take a look at some of the highlights of the latest FINRA arbitration statistics and what this data may mean for securities professionals moving forward.
Interpreting FINRA’s Arbitration Statistics, January Through May
During the first five months of 2026, DRS saw a total of 1,099 new case filings. Of these case filings, 69 percent (763 cases) were initiated by customers, while 31 percent (336 cases) were considered intra-industry. This marked a nine percent increase in the number of new case failings as compared to the same period last year, as the total number of new case filings between January and May of 2025 was 1,004. Compared to the same period in 2025, customer-initiated claims increased by 22 percent, while intra-industry claims fell by 11 percent. During this period in 2026, DRS closed 1,078 cases and reported 2,826 open cases. Moreover, the average number of months it took for DRS to issue regular hearing decisions was reported as 17, while it took approximately 7 months for special proceeding decisions to be issued.
Identifying the Top Controversy Types in Customer Arbitrations
According to the most recent data, FINRA identified negligence as the most common controversy type cited in customer-initiated arbitrations filed between January and May of 2026. A total of 559 customer cases cited negligence, compared to 400 cases including this controversy type during the same period in 2025. Breach of fiduciary duty came in at number two on the list of the top 15 controversy types, which affected 529 customer arbitration claims. During this same period in 2025, breach of fiduciary duty was the top type of controversy involved in customer arbitrations.
The other most commonly cited controversy types involved in customer-initiated arbitrations during the first five months of 2026 are as follows: Failure to supervise (510 cases), misrepresentation (466 cases), breach of contract (432 cases), omission of facts (410 cases), suitability (337 cases), fraud (326 cases), breach of regulation BI (261 cases), violation of Blue Sky laws (164 cases), manipulation (142 cases), elder abuse (105 cases), unauthorized trading (82 cases), errors-charges (63 cases), and third party fraud (61 cases). It’s worth noting that one case may cite more than one controversy type.
What Were The Most Common Security Types Involved in Customer Arbitrations?
The most common type of security involved in customer arbitration filings remained the same from 2025 to 2026: Common stock (154 cases in 2025, compared to 137 cases in 2025). Private equities (80 cases) and real estate investment trusts (68 cases) held the second and third positions in the rankings. Other common security types that were frequently cited in customer arbitration case filings include: Options (53 cases), mutual funds (51 cases), exchange-traded funds (43 cases), structured products (41 cases), limited partnerships (37 cases), corporate bonds (32 cases), annuities (30 cases), cryptocurrency (25 cases), 401(k)s (24 cases), variable annuities (21 cases), preferred stock (14 cases), and municipal bond funds (13 cases). Again, more than one security type may be cited in a customer-initiated arbitration case.
What About Intra-Industry Arbitration Filings?
The top five controversies that FINRA’s DRS reported being cited in intra-industry arbitration filings are as follows: Breach of contract (107 cases), promissory notes (56 cases), wrongful termination (55 cases), compensation (53 cases), and libel, slander, or defamation (46 cases). Other controversies, such as discrimination or harassment (27 cases), breach of fiduciary duty (10 cases), and whistleblower (8 cases), were also common.
How Arbitration Cases Were Closed Through May of 2026
According to DRS, 21 percent of the arbitration cases that closed between January and May of 2026 were decided by arbitrators. Of these cases, 15 percent were closed after a regular hearing, 4 percent concluded after the review of documents, and one percent closed after a special proceeding hearing. Of the 79 percent of arbitration cases that were resolved by other means, 43 percent involved direct settlement by the parties, 13 percent settled using mediation, 16 percent were withdrawn, and the remaining 7 percent were resolved using a different method.
How a Skilled and Experienced Securities Law Attorney Can Help
In today’s fast-paced financial landscape, it’s important to keep an eye on how FINRA’s Dispute Resolution Services (DRS) is approaching and handling customer and intra-industry arbitration cases. If you are interested in learning more about how the latest FINRA arbitration case filings and trends may affect your upcoming dispute, please reach out to Judex Law LLC today by calling (303) 523-4022 to speak with a highly experienced and friendly securities law attorney.