What Is FINRA And What Is An Arbitrator?

So, what is FINRA and what is an arbitrator?  FINRA stands for the Financial Industry Regulatory Authority, a not-for-profit organization that regulates broker-dealers in the United States, ensuring market integrity and protecting investors. Arbitrators are well established professionals with acute critical thinking and listening skills who maintain impartiality while resolving disputes.  Arbitrators hear and study the evidence in a trial-like setting before making a final and binding decision.  We as investors and those of us who are licensed brokers with a broker dealer, all sign an arbitration agreement when we enter into a contract to do business.  An arbitration agreement is a contract where parties agree to resolve disputes through arbitration, a process outside of court, using a neutral third party (the arbitrator) instead of a judge or jury, aiming for faster and potentially less expensive resolution. Arbitration tends to be less expensive than litigation because it typically involves fewer procedural hurdles and streamlined processes.  Additionally, arbitration can be faster, often resolving disputes more quickly than court cases, which can drag on for years. Another advantage is confidentiality.  Five years of full time paid professional work experience is required for all applicants. Individuals with legal, general business and accounting backgrounds are encouraged to apply. However, previous legal, arbitration, or securities experience is not required.

My experience serving as an arbitrator has been with a panel of 3 arbitrators being in the financial, law or accounting world.  The process served all parties well in my opinion, fostering efficiency, fairness and impartiality in the resolution of disputes outside the traditional court system.

I am pleased to be recognized by the FINRA Dispute Resolution Services for 10 years of service.  It has been an honor to serve.      If you would like more information regarding FINRA and/or Arbitration, feel free to reach out to me, I am happy to discuss this with you.