Arbitration Forums (FINRA, AAA, or JAMS?)

Arbitration is an alternative to going to court and tends to be faster and less expensive.

“FINRA” stands for the Financial Industry Regulatory Authority. https://www.finra.org/#/.

The “AAA” stands for the American Arbitration Association. https://www.adr.org/.

“JAMS” stands for the Judicial Arbitration and Mediation Services. .

• How Can I Initiate a Case?

  The first step to the arbitration process is filing a statement of claim against your investment advisor, broker and/or brokerage firm (the respondent). This document outlines the dispute with the respondent, relevant legal arguments, and damages.

• What Happens After I File my Statement of Claim?

  The respondent must then timely file a statement of answer. In this document, the respondent will answer to, argue, and/or deny your allegations.

• What Happens After the Pleadings?

  The parties then engage in arbitrator selection, prehearing conferences, and discovery.

• What Happens Next?

  The previously mentioned steps all lead up to the hearing. After the hearing, a panel of arbitrators will issue an arbitration award, which will include damages awarded among other things.

Although all three forums, FINRA and the AAA provide arbitration forums, they may differ as to scope, membership, arbitrator section, and overall rules and/or procedures. As to the membership aspect, brokerage firms are registered “members” of FINRA. Because of this, the scope of FINRA Arbitration tends to be in a limited securities context, involving brokers or brokerage firms, and sometimes investment advisory firms. However, the AAA and JAMs cover many industries and practice areas outside of securities, such as employment law and commercial disputes. Malecki Law has successful arbitration lawyers willing to consult with you about your case for free.