What to Expect After Filing a FINRA Arbitration Claim

If you’ve been wronged by a broker or financial advisor, filing a FINRA arbitration claim can be a powerful step toward justice. But if you’re new to the process, it can feel overwhelming. What happens after the paperwork is submitted? How long will it take? Will you need to go to court?

At Silver Miller, we understand that most investors are not legal experts—and they shouldn’t have to be. Our goal is to guide clients through every phase of the FINRA arbitration process with clarity, confidence, and purpose. If you’re considering or have already filed a claim, this overview will help you understand what comes next.

What Is FINRA Arbitration?

FINRA, the Financial Industry Regulatory Authority, is a private, self-regulatory organization that oversees broker-dealers in the U.S. It provides a structured arbitration forum for investors to resolve disputes without going to court. Arbitration through FINRA is legally binding and offers a faster, often more efficient alternative to traditional litigation.

Typical cases that go through FINRA arbitration include:

• Unauthorized trading
• Misrepresentation or omission of key information
• Unsuitable investment recommendations
• Elder financial abuse or exploitation
• Failure to supervise or fraud by a registered financial advisor

Once your claim is filed, the process follows a clear sequence, though each case can vary slightly depending on complexity.

Step 1: Submission of the Statement of Claim

Your case officially begins when you or your attorney files a Statement of Claim with FINRA Dispute Resolution. This document outlines the nature of the dispute, the allegations against the broker or firm, and the financial or non-monetary damages being sought.

FINRA will acknowledge receipt of the claim and serve it to the opposing party (the respondent). Filing fees are required at this stage and vary based on the size of the claim.

Step 2: Response from the Broker or Firm

Once the respondent receives the claim, they typically have 45 days to submit an Answer. This response may include:

• A denial of the allegations
• Counterarguments or alternate explanations
• Potential defenses

The respondent may also raise jurisdictional or procedural objections. Your legal team at Silver Miller will review this Answer and prepare accordingly for the next steps.

Step 3: Arbitrator Selection

FINRA uses a system called the Neutral List Selection System (NLSS) to provide a list of arbitrators. Both parties review the list and rank their preferences while striking those arbitrator candidates they find unsuitable.

Typically, a panel consists of three arbitrators (or just one arbitrator for smaller claims). These individuals are trained professionals who are vetted and regulated by FINRA. The arbitrator(s) will ultimately decide the outcome of your case, making this step critically important.

Step 4: Initial Pre-Hearing Conference (IPHC)

Once the arbitration panel is confirmed, the parties will participate in an Initial Pre-Hearing Conference. This is a procedural meeting, usually held by phone, to:

• Set the hearing schedule
• Establish deadlines for document exchange (discovery)
• Address preliminary motions or logistical issues

The arbitration panel may also determine the hearing location and discuss the estimated length of the proceedings.

Step 5: Discovery and Case Preparation

In the pre-hearing phase, both sides exchange relevant documents and information. This process, known as discovery, may include:

• Brokerage account statements
• Trade confirmations
• Email communications
• Internal compliance reports or notes

FINRA requires parties to comply with specific discovery guidelines. If one side refuses to produce key documents, your legal team can request that the panel compel the other party’s compliance.

This stage is vital to building a strong case. Silver Miller works with clients to ensure all evidence is carefully organized, reviewed, and prepared for presentation.

Step 6: Motions and Interim Rulings

Before the final arbitration hearing begins, either party may file motions—requests for the panel to make specific rulings. Common motions include:

• Motion to dismiss claims
• Motion to compel discovery
• Motion for sanctions or protective orders

The arbitrators will rule on these motions based on fairness and the evidence presented. These interim decisions can shape the direction and scope of the arbitration.

Step 7: The Arbitration Final Hearing

The arbitration Final Hearing is where both sides present their case in front of the arbitrators. While less formal than a courtroom trial, it still involves:

• Opening statements
• Witness testimony and cross-examination
• Presentation of documents and exhibits
• Closing arguments

Hearings may last a few days to several weeks, depending on the complexity of the case. They are typically held in person, but virtual options may be allowed in certain situations.

Silver Miller represents clients throughout the hearing to ensure their voices are heard and their evidence is effectively presented.

Step 8: The Award Decision

After the Final Hearing concludes, the arbitrators have 30 days to issue a written decision, known as the Award. This decision will include:

• Whether damages were awarded
• The amount of any compensation
• Any other relief (e.g., reimbursement of legal fees)

FINRA arbitration awards are binding and enforceable in court. That means if the broker or firm refuses to pay, the Award can be converted into a court judgment and enforced accordingly.

Can You Appeal a FINRA Arbitration Award?

FINRA arbitration does not include a traditional appeals process. Once the panel issues its decision, the Award is final. However, there are rare circumstances where an award can be challenged in court, such as if fraud, bias, or misconduct by the arbitrators can be proven.

Because the opportunities for appeal are extremely limited, it is crucial to work with experienced attorneys from the outset. At Silver Miller, we prepare every case with the goal of presenting the strongest possible argument the first time around.

Why Legal Representation Matters

Navigating FINRA arbitration can be intimidating, especially for investors who are unfamiliar with legal proceedings. The process involves strict rules, deadlines, and legal strategy. Without skilled representation, investors may risk having their claims dismissed or undervalued.

Silver Miller has a national reputation for representing victims of financial fraud and broker misconduct. We:

• Thoroughly investigate your claims
• Draft and file your Statement of Claim
• Handle all correspondence, filings, and discovery
• Represent you in hearings and conferences
• Fight for full and fair compensation

Final Thoughts

Filing a FINRA arbitration claim is the beginning of your path to justice. While the process can take time and require careful preparation, it offers a meaningful opportunity to hold financial professionals accountable.

If you believe you’ve been harmed by a broker or financial advisor, you don’t have to face this process alone. Silver Miller is here to guide you every step of the way with clarity, experience, and compassion.

Contact Silver Miller Today

Our team offers free, confidential consultations to help you understand your legal rights and options. Contact Silver Miller today and take the first step toward recovering what you’re owed.