Should You Hire a Securities Arbitration Lawyer?

Investing in the financial markets involves risks, and disputes between investors and brokerage firms or financial advisors can arise. Although investors have the option to represent themselves, it is in their best interests to hire a securities arbitration lawyer.

Understanding Securities Arbitration

Securities arbitration is a dispute resolution process designed to address conflicts between investors and financial industry professionals. The Financial Industry Regulatory Authority (FINRA) operates the largest securities arbitration forum, providing a venue for resolving disputes outside of the traditional court system. The parties involved agree to submit their claims to a panel of arbitrators who have expertise in securities law.

Reasons to Hire a Securities Arbitration Lawyer

Specialized Experience

Securities arbitration involves complex regulations and industry-specific nuances. Hiring a Securities Arbitration Lawyer ensures you have an attorney with extensive knowledge in securities law, brokerage practices, and financial regulations. This is crucial for developing a strategic approach to your case and increasing your chances of success.

Navigating FINRA Rules and Procedures

FINRA has specific rules and procedures governing securities arbitration. An experienced lawyer is familiar with these rules and can guide you through the process. From filing the initial claim to presenting evidence and making legal arguments, an attorney can ensure compliance with FINRA regulations.

Negotiation Skills

Many securities disputes are resolved through negotiation or settlement discussions before reaching a formal arbitration hearing. A skilled attorney can leverage their negotiation skills to pursue a favorable settlement on your behalf, potentially avoiding the time and costs associated with a full arbitration proceeding.

Financial Recovery

The primary goal of securities arbitration is often financial recovery for the aggrieved party. A Securities Arbitration Lawyer can help you seek compensation for losses, damages, or any financial harm caused by broker misconduct, fraud, or other wrongful actions.

When to Hire a Securities Arbitration Lawyer

If you find yourself in any of the following situations, it is highly advisable to seek the assistance of a Securities Arbitration Lawyer:

  • Broker Misconduct: If you suspect that your broker has engaged in misconduct, such as unauthorized trading, churning, or making unsuitable investment recommendations.
  • Investment Fraud or Misrepresentation: If you believe you have been a victim of investment fraud or misrepresentation, where critical information about an investment was withheld or misrepresented.
  • Breach of Fiduciary Duty: If your financial advisor or investment professional has breached their fiduciary duty by prioritizing their interests over yours.
  • Failure to Diversify: If your portfolio was not adequately diversified, leading to substantial losses.
  • Negligent Supervision: If you believe that the brokerage firm failed to adequately supervise its employees, leading to financial losses.
  • Alternative Investments.  Financial Advisors often recommend what are known as alternative investments, which are investments not correlated to the stock market. This could include REITs, private placements, limited partnerships and other investments not traded on a public markets.  These investments typically pay high commissions, can be very risky, are illiquid, are not always marketed appropriately and may not be suitable for investors.
  • Failure to Disclose Risks: If you were not properly informed about the risks associated with an investment and this lack of disclosure resulted in losses.
  • Disputes with Financial Institutions: If you have disputes with financial institutions related to your investments, such as disputes over fees, account management, or other contractual matters.

In these scenarios, hiring a trusted securities arbitration attorney at Weiss Brown in Phoenix is crucial for navigating the arbitration process effectively and significantly enhancing your chances of a favorable outcome.

Have Feedback or Questions ?

Let us know

  • This field is for validation purposes and should be left unchanged.

Weiss Brown is committed to providing information on its website that is accessible to all users. To this end, we are working constantly to improve the overall usability of our website, using Web Content Accessibility Guidelines (WCAG) 2.0, Level AA success criteria. As a U.S.-based organization, we strive to meet the requirements of the Disability Discrimination Act, Section 504 of the United States Rehabilitation Act of 1973, and Title II of the Americans with Disabilities Act. We make every effort to ensure that our communications are accessible to those with specific accessibility requirements, including persons with visual, hearing, cognitive, and motor impairments. Weiss Brown attempts to adhere to the accepted guidelines and standards for accessibility and usability, but some content on our website or external resources linked to our pages may not meet the standards we are striving to achieve. We are continually seeking out solutions that will bring all areas of the site up to the same level of overall web accessibility.