In cases of disagreement regarding securities, individuals can opt for arbitration as a means to resolve the issue. To initiate the process, the individual making the complaint (referred to as the claimant) must draft a document known as a Statement of Claim. This document outlines the problem, its occurrence, and the desired resolution sought by the claimant. There are two categories of claims: legal claims (pertaining to the violation of legal rights) and industry-specific claims (related to the breach of securities industry regulations). Additionally, the claimant must complete a Submission Agreement and submit a fee to the Financial Industry Regulatory Authority (FINRA). Once all the necessary documents are correctly filed, FINRA will provide the Statement of Claim to the other party involved (known as the respondent) for their response to the complaint.
When choosing arbitration to settle a securities dispute, individuals must submit a Statement of Claim to FINRA. This document outlines the nature of the claims, the amount of damages sought, and the underlying facts. There are two types of claims: legal claims based on the infringement of legal rights, such as fraud or negligence, and industry-specific claims related to violations of industry rules, such as excessive trading. Along with the Statement of Claim, claimants must also submit a Submission Agreement and pay FINRA filing fees. Claims can be submitted online or by mail, and any deficiencies must be rectified, potentially causing delays. Once the filing requirements are met, FINRA will serve the Statement of Claim on the respondent party or parties. For instance, if an investor believes their broker engaged in excessive trading, they could file an industry-specific claim with FINRA, providing evidence and paying the necessary fees.
A: To file a complaint, you need to submit a written complaint to the appropriate regulatory authority, such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA). Include all relevant details and supporting documents.
A: Your complaint should include details about the parties involved, the nature of the dispute, any relevant transactions, and any supporting evidence or documentation you have.
A: Yes, there is usually a statute of limitations for filing a complaint. It is important to check the specific time limit applicable to your case, as it can vary depending on the jurisdiction and the nature of the dispute.
A: In most cases, you cannot file a complaint anonymously. Regulatory authorities typically require your contact information to investigate the complaint properly. However, they may keep your identity confidential during the investigation if requested.
A: After filing a complaint, the regulatory authority will review the details and determine whether to investigate further. They may contact you for additional information or evidence. If they find evidence of wrongdoing, they may take disciplinary action against the party involved.
A: Yes, you can pursue legal action concurrently with the complaint investigation. Filing a complaint does not prevent you from seeking legal remedies through civil litigation or arbitration.
A: The potential outcomes can vary depending on the specific circumstances. If the regulatory authority finds evidence of misconduct, they may impose fines, sanctions, or other disciplinary actions. They may also facilitate a settlement between the parties involved.
A: Yes, you can usually appeal the decision made by the regulatory authority. Each jurisdiction has its own appeal process, which typically involves submitting a written appeal and presenting arguments supporting your case.
A: Yes, it is advisable to consult with an attorney experienced in securities law to guide you through the complaint filing process. They can help ensure that your complaint is properly prepared and increase your chances of a successful outcome.
A: Generally, there are no fees for filing a complaint with regulatory authorities. However, if you decide to hire an attorney or pursue legal action separately, there may be associated costs and fees. It is important to discuss these potential costs with your attorney beforehand.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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