An investor who is abused by his or her securities broker cannot sue in court. Instead, the investor must sue the broker or the brokerage firm in arbitration before the Financial Industry Regulatory Authority, otherwise known as “FINRA.”
FINRA maintains its own arbitration forum that shares certain features of court litigation, but is also different in many material ways. Here are seven key differences between FINRA arbitration and litigation in court:
- First, FINRA staff processes the claim filed by the customer against the broker or firm and administers the entire case, not the clerk of court.