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What is the difference between arbitration and litigation in financial services?
FINRA arbitration resolves investor disputes faster and more affordably than court litigation, with binding decisions issued on a set timeline, reducing recovery wait times.
- The Financial Industry Regulatory Authority requires investors to use arbitration rather than suing brokerage firms in court, as FINRA cases proceed through arbitration instead of litigation.
- Brokerage contracts commonly compel arbitration for investor-broker disputes, and The Financial Industry Regulatory Authority requires members to use arbitration, describing it as faster, more affordable and less complex.
- In FINRA arbitration, parties present evidence to arbitrators who issue binding awards on set timelines with limited discovery, generally excluding depositions compared to court litigation.
- Arbitration resolves disputes faster, enabling quicker recovery for investors, costs less than court litigation, and arbitration awards face very limited grounds for challenge or appeal under FAA and State Arbitration Acts.
- Erez Law PLLC highlights its FINRA arbitration experience, citing over 50 arbitration cases tried and more than $200 million recovered for investors, emphasizing private arbitration's role in investor disputes.
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Total News Sources32
Leaning Left1Leaning Right1Center26Last UpdatedBias Distribution93% Center
Bias Distribution
- 93% of the sources are Center
93% Center
C 93%
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