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FINRA Mediation

Have you been wronged by a financial advisor or their broker-dealer? Are you looking for an alternative to FINRA arbitration services? If so, you may want to consider using FINRA mediation services. Here's what you need to know about how Heritage Law Office can help you with this process.

What is FINRA Mediation?

FINRA mediation is a confidential, informal, and voluntary process in which a neutral mediator helps parties resolve their dispute. The mediator does not make decisions or issue rulings; rather, they facilitate discussion and help the parties reach a mutually agreeable resolution. Unlike arbitration, mediation does not have any formal rules of procedure or evidence and is not binding on the parties.

How Does FINRA Mediation Work?

The first step in the process is to schedule a free consultation with us so that we can assess your case and determine whether mediation is right for you. If we decide to move forward with mediation, we will contact the other party (or their attorney) to see if they are willing to participate. If both parties agree to mediate, we will work with you to schedule a mediation session. 

During the session, each party will have an opportunity to explain their side of the story and share their desired outcome. The mediator will help facilitate discussion between the parties in order to try to reach a mutually agreeable resolution. If an agreement is reached, the terms of the settlement will be put into writing and signed by both parties. Once signed, the agreement is binding on both parties. 

If an agreement cannot be reached during mediation, the parties are free to pursue other options, such as arbitration or litigation. However, because mediation is confidential, anything said during mediation cannot be used in arbitration or litigation.

Why Choose Mediation?

There are many benefits of choosing mediation over other dispute resolution options, such as arbitration or litigation. First, mediation is less expensive than arbitration or litigation because there are no filing fees and no attorneys' fees unless you choose to have an attorney present during mediation (which is not required). Second, mediation is faster than arbitration or litigation because it does not require exchanging discovery or attending pretrial conferences; instead, it allows both parties to sit down and directly discuss the issues in dispute. Finally,mediation is confidential; anything said during mediation cannot be used in arbitration or litigation. This allows both parties to feel more comfortable discussing sensitive issues and potential solutions without fear that their words will be used against them later on. 

What Happens if FINRA Mediation Does Not Work?

If your case is not resolved in mediation, your case can move along to the FINRA Arbitration process.

FINRA arbitration is a process through which disputes between investors and financial firms are resolved. It is administered by the Financial Industry Regulatory Authority (FINRA), and it is an alternative to going to court. Unlike court, FINRA arbitration is typically faster, cheaper, and less adversarial. It's also confidential, which means that the proceedings will not become public record. 

If you decide to file for FINRA arbitration, a panel of arbitrators will hear your case and render a decision. If the decision is in favor of the individual, the financial advisor or broker-dealer will be required to pay damages.

What are Some Common Claims Resolved in FINRA Mediation?

Here are some types of claims that can be filed in FINRA Mediation:

  1. Securities Fraud
  2. Theft
  3. Unsuitability
  4. Churning
  5. Failure to Supervise
  6. Breach of Fiduciary Duty
  7. Excessive Trading
  8. Ponzi Schemes

Contact a FINRA Mediation Attorney Today

If you've been wronged by a financial advisor or broker-dealer and are looking for an alternative to FINRA arbitration services, consider using FINRA mediation services. Heritage Law Office can help you through this process by providing knowledgeable and experienced representation every step of the way. Contact us today for a free consultation by calling 414-253-8500 or by sending us a message!

Frequently Asked Questions (FAQs)

What is the difference between FINRA Mediation and Arbitration?

FINRA mediation and arbitration are both methods of resolving disputes between investors and financial firms. However, they differ in key ways. Mediation is an informal, voluntary process in which a neutral mediator helps parties discuss their dispute and reach a mutually agreeable resolution. In contrast, arbitration is a more formal process in which a panel of arbitrators hears both sides and makes a binding decision. Unlike in mediation, the parties do not control the outcome in arbitration.

Who can participate in FINRA Mediation?

Any party involved in a dispute with a financial advisor or broker-dealer can participate in FINRA mediation. This includes individual investors, groups of investors, brokerage firms, and even employees of these firms. However, mediation requires the agreement of all parties to the dispute, so it can only occur if both sides are willing to participate.

What are the benefits of FINRA Mediation?

FINRA Mediation offers several benefits. Firstly, it's typically less expensive than other dispute resolution options like arbitration or litigation. This is because it involves fewer procedural requirements and does not require attorney representation, though you are free to have an attorney if you wish. Secondly, mediation is typically faster than other methods, as it does not require discovery or pretrial conferences. Finally, because mediation is confidential, the parties can speak freely without fear that their statements will be used against them in later proceedings.

What happens if an agreement cannot be reached in FINRA Mediation?

If an agreement cannot be reached during mediation, the parties can choose to pursue other dispute resolution options like arbitration or litigation. It's important to remember that anything discussed during mediation is confidential and cannot be used in subsequent proceedings.

How can Heritage Law Office assist with FINRA Mediation?

Heritage Law Office offers experienced and knowledgeable legal representation for those participating in FINRA Mediation. We provide initial consultations to assess your case and guide you through every step of the mediation process. This includes contacting the other party to propose mediation, scheduling the mediation session, and facilitating discussions during the session. If an agreement is reached, we help ensure it's accurately reflected in a binding, written agreement.

Contact Us Today

For a comprehensive plan that will meet your needs or the needs of a loved one, contact us today. Located in Downtown Milwaukee, we serve Milwaukee County, surrounding communities, and to clients across Wisconsin, Minnesota, Illinois, and California.

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