How to Prepare for a FINRA Hearing

If you want to succeed, you may want an excellent attorney, the right paperwork, and, perhaps most importantly, a clear goal in mind for what you want out of FINRA’s dispute resolution process.

Whether you’ve decided to file a FINRA arbitration claim or a request for mediation, adequate preparation is essential to if you want to give yourself the best chance of being awarded the funds you’ve lost through broker fraud or other FINRA sales practice violations.

Preparing for an arbitration hearing

If you’ve already filed a statement of claim, sent in supporting documents, and paid your fees, it’s time to start preparing for the arbitration hearing. Once the arbitrator or arbitrators are selected, they will hold a pre-hearing conference with each party’s representatives, usually over the phone.

Experienced counsel can help maximize your recovery

It’s possible for a claimant to represent themselves in a FINRA arbitration hearing, but considering that nearly all brokers and financial firms will hire experienced lawyers, it’s highly recommended that you do the same.

Ideally, you will have consulted your attorney before filing your statement of claim to ensure that all the facts and information you’ve submitted to FINRA are accurate, consistent, and thoroughly supported by documentation. The arbitration panel will schedule an initial pre-hearing conference (IPHC) to introduce themselves and discuss scheduling, so FINRA recommends that both parties have their calendars ready and available.

The discovery process

The next stage of arbitration is discovery, a process in which parties exchange documents and information. Shortly before the final hearing, witnesses will be identified. There are two types of witness that can be called during a FINRA arbitration hearing: fact witnesses and expert witnesses.

Fact witnesses testify about facts relating to the financial dispute in question. Expert witnesses have specialized knowledge that can help the arbitrators understand technical or financial elements of the case that may be complex. Expert witnesses could include forensic accountants or financial specialists, for example.

During the case, representatives for the claimant will be able to give both opening and closing arguments, much like in a regular court case. You will need the help of an attorney to help organize documents for both your statement of claim as well as for discovery, to select witnesses, attend the pre-hearing conference, and make opening and closing arguments in your behalf.

Preparing for a mediation session

Mediation is a popular way to resolve disputes. Once parties have agreed to a mediation session and a mediator has been chosen, each party and their representatives must sign a mediation submission agreement. This includes the requirement that all information released during the mediation session is confidential. It will also outline the mediation fees and how they will be split amongst the parties.

Most mediators will require a written statement from each party, so it’s wise to work with your attorney to draft this statement well before your mediation session begins. The mediator will also usually ask you what you hope to gain out of the mediation session. An experienced attorney can help you determine a reasonable and realistic range of potential solutions to your dispute.

What to expect during the mediation session

Much like an arbitration hearing, FINRA staff will help schedule a time and location for your mediation session. When the session begins, the mediator will generally introduce themselves and both of the parties, as well as set some ground rules for the session. The mediator will then help guide the two parties closer to a potential settlement agreement and may decide to meet with both of the parties privately in order to facilitate an agreement between them.

Remember, mediation is voluntary and the mediator cannot force either side to settle the claim. However, the most experienced mediators for securities arbitration cases have a very high success rate.

Both FINRA mediation and FINRA arbitration require significant preparation and the assistance of an experienced attorney is highly recommended. If you have any questions about the FINRA dispute resolution process, think you have been defrauded by a broker, financial advisor, or financial institution, or want to know your rights as an investor, contact Silver Law Group for a free consultation.