While FINRA plays an essential role in maintaining the integrity of the securities industry, it’s crucial to understand the differences between filing an investor regulatory complaint with FINRA and participating in a FINRA dispute resolution program, such as mediation or arbitration.
Investor Regulatory Complaints
Filing an investor complaint is an effective way to bring potential broker misconduct or fraud to FINRA’s attention. If FINRA’s investigation of the complaint reveals evidence of wrongdoing, they have the authority to impose a range of penalties and sanctions, including monetary sanctions, restitution orders, suspensions, and possibly censures. However, it’s essential to understand that even if FINRA penalizes the broker after reviewing the complaint, it does not necessarily mean the investor will be compensated.
If an investor aims for financial recovery, they need to participate in dispute resolution. This process involves filing a claim for arbitration or mediation, the two dispute resolution options that FINRA currently offers. Arbitration and mediation are more involved processes and typically require the guidance of an experienced attorney.
At Silver Miller, we can help you understand these different processes, guide you through them, and determine the best course of action based on your unique situation. We are dedicated to safeguarding your rights and interests, ensuring that you have the legal support necessary to navigate these complex procedures.