FINRA Claims Lawyer

At Weltz Law, we protect your financial future against broker misconduct through precise FINRA arbitration and litigation. Our seasoned FINRA claims lawyers excel in navigating the complexities of the Financial Industry Regulatory Authority (FINRA) regulations. Whether you're dealing with unauthorized trading, unsuitable investments, or any broker deceptions, Weltz Law is committed to restoring the integrity of your investments and securing the justice you deserve.

What is FINRA?

The Financial Industry Regulatory Authority is a private, non-governmental organization that regulates brokers and brokerage firms in the United States. Virtually all disputes between investors and their stockbrokers are decided in the arbitration forum operated by FINRA. FINRA is not a government agency but operates under Congress's authority to ensure investors are treated honestly and fairly.

Investor rights groups have historically been critical of the FINRA arbitration forum, viewing it merely as an extension of the securities industry and as biased against investors. However, FINRA has changed the arbitration process over the years to level the playing field between investors and investment professionals. In our experience, most FINRA arbitrators use common sense to achieve fair results. Regardless, a FINRA arbitration is final and binding and is subject to court review only in minimal instances.

Common FINRA Claims

• Breach of Contract: This claim arises when one party fails to fulfill its obligations under a contract. In a securities context, this could involve a broker not adhering to the agreed terms of investment management.
• Negligence: This occurs when a broker fails to exercise the appropriate level of care that a reasonably prudent broker would under similar circumstances, leading to financial losses for the investor.
• Failure to Supervise: This claim is made against brokerage firms for not adequately supervising their brokers, which might allow for misconduct like unauthorized trading or fraud.
• Fraud/Misrepresentation: Involves deliberate deception to secure unfair or unlawful gain, such as a broker misleading an investor about the nature of an investment or its risks.
• Unauthorized Trading: Refers to transactions made by a broker without the client's permission or contrary to the client's instructions.
• Churning/Excessive Trading: When a broker buys and sells securities excessively, primarily to generate commissions rather than to benefit the client's investment objectives.
• Unsuitable Transactions: Claims arise when brokers recommend investments that are not aligned with the client's financial goals, risk tolerance, or investment timeline.

Types of Investments Commonly Involved in FINRA Arbitrations

• Stocks: Shares of ownership in a corporation, which may involve disputes over misrepresentation or unsuitable recommendations.
• Bonds: Debt securities that may be subject to claims of misrepresentation regarding the issuer's financial health or the bond's safety.
• REITs (Real Estate Investment Trusts): Companies that own or finance income-producing real estate, potentially involving complex valuations and suitability issues.
• ETFs (Exchange-Traded Funds): Funds that track indexes but trade like stocks on exchanges. Disputes may involve improper management or investment strategies.
• Options: Contracts that give the buyer the right, but not the obligation, to buy/sell an underlying asset. These can be complex and prone to misrepresentation or unsuitability claims.
• Limited Partnerships: Investment vehicles that may have high costs and substantial risks, often leading to disputes over disclosure and suitability.
• Variable Annuities: Insurance products tied to investment accounts that can be complex and costly, often leading to claims of unsuitability or misrepresentation.
• Private Equities: Investments in companies not listed on a public exchange, which can be high-risk and may involve disputes over disclosure and valuation.
• Annuities: Insurance products designed to provide steady income, which can lead to claims if sold as too safe or suitable for all investors.
• Alternative Products: Includes a wide range of non-traditional investments, such as hedge funds, which may lead to disputes over complexity and risk disclosure.
• Structured Products: Customized products that often include derivatives, whose complexity can lead to misunderstandings and disputes about risk and suitability.

How Weltz Law Can Help

At Weltz Law, our FINRA claims lawyers provide comprehensive legal services to protect and defend investors against broker misconduct. Our FINRA claims lawyers approach is detailed and tailored to address each client's unique needs, ensuring the highest standards of integrity and accountability are maintained in their investment dealings.

Protection Against Unauthorized Trading

We take decisive action against brokers who execute trades without the explicit permission of their clients. Unauthorized trading can undermine your investment strategy and expose you to unwanted risks and losses. Our FINRA claims lawyers work diligently to rectify such issues, seeking restitution and ensuring such practices are halted.

Combating Excessive Trading (Churning)

Churning occurs when a broker engages in excessive trading mainly to generate commissions rather than to benefit the client's financial interests. This practice can significantly erode investment returns through unnecessary commissions and fees. We scrutinize account activity for signs of churning and hold responsible brokers accountable, recovering damages for our clients.

Advising on Unsuitable Investments

Investment recommendations should always align with the client's financial goals, risk tolerance, and investment timeline. We assist clients steered into unsuitable investments, advocating for their rights and seeking remedies that may include compensation for losses and corrective measures against the advising broker.

Addressing Misrepresentation and Omission of Material Facts

We act against brokers and advisors who mislead investors by misrepresenting or omitting critical information about investment products. Such deceptive practices can lead to substantial financial losses and violate core FINRA regulations. Our FINRA claims lawyers meticulously gather evidence and pursue claims to rectify and compensate for the misinformation provided.

Upholding FINRA Standards

Weltz Law Firm is steadfast in its commitment to upholding FINRA standards. We ensure that all brokerage activities involving our clients adhere to the strictest regulatory requirements. We monitor compliance continuously and take action when discrepancies arise.

FINRA Arbitration Process

The FINRA Arbitration Process is a method to resolve disputes between investors and brokers or between brokers and their firms. It is an alternative to traditional litigation designed to be faster and more cost-effective. Here’s an overview of the key steps involved in the FINRA arbitration process:

1. Initiating the Claim

The process begins when an investor files a Statement of Claim with FINRA. This document outlines the details of the dispute, including the parties involved, the issues in dispute, the type of relief or compensation sought, and the facts supporting the claim. Along with this, the claimant must pay a filing fee based on the amount of the claim.

2. Respondent’s Answer

After the claim is filed, the broker or firm (respondent) has 45 days to file an Answer. This response must address the allegations set forth in the Statement of Claim and can also include any counterclaims or defenses the respondent wishes to assert.

3. Selecting Arbitrators

The next step involves the selection of arbitrators. Depending on the size of the claim, one or three arbitrators will be appointed. Both parties have a say in selecting the arbitrators from a list provided by FINRA, using a process of elimination and ranking to determine the panel.

4. Prehearing Conferences

Before the hearing, the arbitrators will conduct prehearing conferences to set timelines, exchange documents, and clarify the issues that need to be resolved. This phase is crucial for planning the arbitration hearing, agreeing on procedural matters, and scheduling the dates for the hearing.

5. Discovery Process

During discovery, both parties exchange documents and other information relevant to the case. Unlike in court, the discovery process in FINRA arbitration is generally more limited, which helps reduce the time and cost of the proceedings.

6. The Arbitration Hearing

The arbitration hearing is similar to a trial but less formal. It is typically held in a conference room, and both parties can present evidence, call witnesses, and make arguments. The arbitrators preside over the process, ask questions, and ensure that the proceedings are fair and orderly.

7. The Decision

After the hearing, the arbitrators deliberate and decide the case. This decision, known as the "award," is usually rendered within 30 days of the hearing. The award is binding and enforceable in court.

8. Post-Award Actions

Once the award is issued, either party has the right to confirm, challenge, or move to vacate the award in court, although the grounds for overturning an arbitration award are very limited.

The FINRA arbitration process provides a structured yet flexible framework for efficiently and cost-effectively resolving securities disputes. It is a critical resource for investors seeking redress for grievances without undergoing the lengthy procedures typical of court systems.

How Long Does FINRA Arbitration Take?

The duration of the FINRA arbitration process can vary significantly depending on a number of factors, including the complexity of the case, the availability of the parties and arbitrators, the volume of evidence, and the efficiency of the proceedings.
Factors that may influence how long your FINRA claim may take:

• Complexity of the Case: More intricate cases may require longer periods for gathering evidence, presenting arguments, and deliberations.
• Cooperation and Settlement: The arbitration process can be expedited if parties are open to negotiation and reach a settlement early on. A skilled FINRA attorney in New York can guide you through this.
• Discovery Phase: This phase involves collecting evidence and information relevant to the case. Depending on the extent of discovery needed, this phase can lengthen the process.

Why Choose Weltz Law?

Choosing the right legal representation is critical when facing financial disputes and regulatory challenges. At Weltz Law, our FINRA claims lawyers provide experienced legal advocacy focused on securities and FINRA arbitration that sets us apart. Here’s why you should consider partnering with us for your legal needs:

• Deep Industry Knowledge: Our attorneys bring extensive experience and a deep understanding of securities law to every case. We stay at the forefront of legal and regulatory changes, ensuring knowledgeable and up-to-date representation.
• Client-Focused Strategy: We prioritize your goals and interests at Weltz Law. We treat each case individually and tailor our strategies to meet your unique needs and circumstances.
• Commitment to Transparency: We believe in clear and open communication with our clients. You’ll always receive straightforward assessments of your case and be informed about all developments.
• Aggressive Advocacy: We are known for our assertive approach to representing our clients. We relentlessly pursue the best possible outcomes, whether negotiating settlements or arguing in arbitration and court.
• Ethical Integrity: Our firm upholds the highest standards of professional ethics and integrity. Clients can trust that their cases are handled with the utmost respect and diligence.
• Supportive Guidance: Navigating the complexities of securities disputes can be challenging. We provide continuous guidance throughout the legal process, helping you make informed decisions at every step.
• Proven Success: Weltz Law has a strong track record of achieving favorable results for our clients, from securing financial recoveries to successfully defending against unfounded claims.

Choosing Weltz Law means partnering with a firm dedicated to defending your rights and securing your financial future. Contact us today to discuss how we can assist you with your legal needs.

Ready to Protect Your Investments?

Don't let broker misconduct impact your financial future. Contact Weltz Law today to schedule a consultation with one of our experienced FINRA lawyers. Our firm has helped national investors recover millions of dollars in compensation for losses caused by brokers' and financial advisors' fraudulent or negligent acts.

Contact us today to let our legal team help you make the most of your case and get you the best possible recovery. We serve clients in New York and throughout the United States.

FINRA Lawyer FAQs

What is FINRA?

FINRA, or the Financial Industry Regulatory Authority, is a non-governmental organization that regulates member brokerage firms and exchange markets. Its primary role is to protect investors by ensuring the securities industry operates fairly and honestly.

Why would I need a FINRA lawyer?

If you have experienced investment losses due to broker misconduct such as unauthorized trading, excessive trading (churning), unsuitable investment advice, or misrepresentation of investment information, a FINRA lawyer can help you navigate the complex process of filing a claim and seeking restitution.

What is FINRA arbitration?

FINRA arbitration is a dispute resolution process that is faster and generally less costly than traditional litigation. It involves an arbitrator or a panel of arbitrators who listen to both sides of the dispute and make a binding decision. This process is mandatory for most disputes between investors and their brokers or brokerage firms.

Can I go directly to court instead of using FINRA arbitration?

In most cases involving broker-dealers and their customers, arbitration through FINRA is mandatory as agreed upon in most brokerage account agreements. However, certain exceptions and circumstances exist where court litigation might be possible or necessary.

What types of claims can be handled by FINRA arbitration?

FINRA arbitration can handle a variety of claims related to securities investment, including disputes about investment mismanagement, fraud, unethical behavior, unsuitable advice, excessive trading, and other types of broker misconduct.

How long does the FINRA arbitration process take?

The timeline can vary significantly based on the case's complexity, the amount of evidence, and the availability of parties and arbitrators. On average, the process can take several months to over a year.

What should I expect during the arbitration process?

During the arbitration process, both parties will present evidence and arguments to the arbitrators. This includes written statements, documentary evidence, and possibly testimonial evidence during a hearing. After reviewing all the information, the arbitrators will determine the outcome of the case which is typically final and binding.

How can Weltz Law assist me with FINRA arbitration?

Weltz Law provides comprehensive support throughout the FINRA arbitration process, including case evaluation, claim filing, evidence preparation, representation during hearings, and post-decision proceedings. Our goal is to achieve the best possible outcome for our clients by leveraging our deep understanding of securities law and the FINRA arbitration process.

What is the first step I should take if I think I have a claim?

The first step is to consult with a knowledgeable FINRA lawyer who can assess the details of your situation and provide guidance on how to proceed. Contact Weltz Law to schedule a consultation.