Auction Rate Securities Fraud Lawyer
The Financial Industry Regulatory Authority (FINRA)
Formed in 2007 by a merger of the National Association of Securities Dealers and the New York Stock Exchange’s enforcement division, the Financial Industry Regulatory Authority, or FINRA, is responsible for regulating, training, and licensing firms and personnel who deal in securities.
Like NASD, FINRA exercises authority over thousands of securities and brokerage firms. In addition to compiling and enforcing its own set of rules, it is also able to punish member firms for violations of federal statutes as set forth by the Securities and Exchange Commission (SEC).
FINRA Arbitration and Auction Rate Securities
FINRA is also responsible for handling and arbitrating disputes between its member firms and their customers and employees. Because virtually all securities firm customers are required to sign documents agreeing to binding arbitration in the case of a dispute, understanding FINRA arbitration is key to achieving a satisfactory resolution.
The arbitration process is handled by a group of three approved panelists who are selected by the two involved parties from a list provided by FINRA. Should all listed arbitrators be rejected, FINRA will make the final decision.
Although legal representation is not required during the FINRA arbitration process, it is highly advised, as the likelihood of achieving a positive result decreases dramatically without the assistance of an experienced securities lawyer.
In the wake of the auction rate securities market crash, many investors may find that FINRA arbitration is the best way for them to recoup some of their losses and hold brokerage firms responsible for their abuses. Unlike class action lawsuits, which require all claimants to have similar cases and often take years to resolve, FINRA arbitration can be conducted on an individualized basis and can be measured in months, not years.
To learn more about FINRA arbitration, contact an auction rate securities lawyer today at 800-220-9341.