The Arbitration Process
A request for FINRA to arbitrate a dispute is called a claim, and the party that files the claim is called the claimant. A claim must specify the relevant facts and the size of the monetary remedy (called an award) sought by the claimant. As with FINRA disciplinary proceedings, the party alleged to have engaged in wrongdoing is called the respondent.
A panel will consist of one arbitrator for claims of $50,000 or less. Claims in excess of $50,000, but no more than $100,000, will have one arbitrator unless the parties agree in writing to three. Claims in excess of $100,000 will have three arbitrators unless the parties agree in writing to one.
Arbitrators are selected from a roster of neutral persons. At least half of FINRA’s pool of potential arbitrators must be from outside the industry. A public arbitrator is one who has no present association with the industry and has not been employed in the industry for at least the past 20 years. A nonpublic arbitrator is a person who is employed in