FINRA Arbitration 

Financial Industry Regulatory Authority (FINRA) arbitration is generally faster, less expensive and less complex than state or federal court. Financial advisers and broker employment contracts contain an arbitration clause. This generally means that disputes arising out of the contract must be resolved via arbitration.

To initiate a FINRA arbitration, the claimant must draft and file a Statement of Claims with FINRA. The parties to the dispute selects neutral third parties, called arbitrators from a FINRA provided list. The arbitrators act as the judges and will listen to the arguments set forth by the parties. They will study the testimonial and documentary evidence, and issue a decision, called an award. The award, is final and binding. There are limited circumstances in which an arbitration award may be vacated. 

Disputes generally are resolved within 18 months. FINRA Arbitration is as an alternative to the courts because it is considered a prompt and inexpensive means of resolving complicated securities and employment related issues.