Filing a Claim Through FINRA vs. Filing a Regulatory Complaint: What’s the Difference?
When investors suffer losses due to misconduct by brokers or brokerage firms, they often don’t realize they have multiple avenues for seeking justice. Two of the most common—but very different—paths are filing a FINRA arbitration claim and submitting a regulatory complaint. At Silver Miller, we help wronged investors understand their options and fight for the financial recovery they deserve.
FINRA Arbitration: A Legal Process to Recover Your Money
If you’ve been defrauded or financially harmed by a broker, FINRA arbitration may be the best route to pursue recovery. FINRA (the Financial Industry Regulatory Authority) is the self-regulatory body that governs brokerage firms, registered brokers and investment advisors, and enforces industry rules.
Filing a claim through FINRA’s arbitration forum (FINRA Dispute Resolution) allows investors to bring legal claims against brokerage firms or registered representatives/advisors outside of court. It is a legally binding process that can result in a monetary award to the investor if the investor prevails before a panel of arbitrators.
At Silver Miller, we represent clients nationwide in FINRA arbitration cases involving:
- Unauthorized trading
- Misrepresentation or omissions
- Unsuitable investment recommendations
- Overconcentration in risky products
- Elder financial exploitation
FINRA arbitration is typically faster and less expensive than traditional litigation in court, but success requires skilled legal counsel who understands the rules and nuances of the process.
Regulatory Complaint: Alerting FINRA to Misconduct
Filing a regulatory complaint with FINRA is not the same as bringing a legal claim before FINRA Dispute Resolution. It’s an enforcement mechanism—meant to notify regulators of potentially unethical or illegal conduct undertaken by a financial advisor or firm.
This process allows investors to:
- Report misconduct, fraud, or unethical behavior
- Prompt FINRA to investigate and possibly sanction the offending party
- Help protect others from similar harm
However, filing a complaint does not result in direct compensation to the victim. It’s an important step in holding bad actors accountable, but it won’t help you recover your financial losses.
Which Should You Choose?
If your goal is to recover money you’ve lost due to fraud or broker misconduct, you should follow the path of filing a FINRA arbitration claim. Filing a regulatory complaint may help flag bad behavior, but it will not compensate you for your losses.
In many situations, both actions may be appropriate—but don’t go it alone. These systems can be complex, and broker-dealers have teams of lawyers working to protect their interests. You need advocates who are equally experienced—and equally aggressive.
Let Silver Miller Help You Recover Your Investment Losses
Silver Miller is recognized as one of the nation’s leading and most creative law firms representing victims of investment fraud. Our attorneys have extensive experience in handling FINRA arbitration claims and have helped countless investors—especially retirees and seniors—recover millions in lost funds.
If you’ve been financially harmed by a broker or investment advisor, or if you believe your loved one is a victim of elder financial abuse, we’re here to help.
Call Silver Miller today for a confidential case evaluation. You don’t have to face this alone—we’re the crypto lawyers and investor advocates who fight for justice.
