Securities Arbitration Attorney
Securities arbitration is a dispute resolution process by which the traditional method of taking up a lawsuit and going to court is avoided. Instead, the matter is decided by a panel of arbitrators, in a somewhat private proceeding. Most of these proceedings are heard by The Financial Industry Regulatory Authority (FINRA). If you or your company is facing pending securities arbitration heard before FINRA or any other mediator, contact the securities arbitration attorneys at The Blanch Law Firm today and they will take all actions possible to resolve this dispute as quickly and as professionally as possible.
Arbitration has existed for hundreds of years, yet it was not until a recent decision by The U.S Supreme Court that securities arbitration became the modern tool that it is today in mediating disputes between financial institutions and investors. Securities arbitration has become a popular relief method in the financial industry because such arbitration progresses rapidly and is inexpensive to resolve. Another benefit of securities arbitration is that the resolutions which come about by such mediation are binding and final. It is important to note that in many cases choosing to use securities arbitration to resolve a dispute means giving up your right to pursue the matter through the courts.
There are specific laws that govern securities arbitration proceedings in both The State and Federal Courts. It is important that you do not go into such arbitrations without a skilled team of securities arbitration attorneys working to protect your interests. Not having an experienced securities arbitration law firm to protect your rights can be very damaging to your firm and could cripple the cash flow of your business. If you need an experienced and aggressive white collar firm to defend your interests during mediation, contact the skilled securities lawyers at The Blanch Law Firm today and take the important steps necessary in protecting your business.
Securities arbitration occurs when shareholders or investors have a complaint about the way in which the financial institutions which they chose to manage their funds are operating. Common complaints include but are not limited to:
- Misrepresentation: providing investors with misinformation or omitting key information resulting in them investing in something which may not be right for their portfolio goals can result in securities arbitration.
- Churning: If a broker is accused of excessive buying and selling of stocks in one of their client’s accounts for the purpose of generating commission, accusations of churning can be brought forth during securities arbitration.
- Investment Fraud: If investors are sold an investment based on false information and the actions result in their own fiscal loss, accusations of investment fraud can arise during FINRA securities arbitration.
- Unauthorized Trading: If a broker makes a trade to a clients account that was not authorized by that client, accusations of unauthorized trading will arise during securities arbitration.
- Failure to Diversify: in order to construct a portfolio that manages the inherent risk of the securities market, diversification of investments must be adopted. Losses that were generated by a portfolio that was too concentrated in one specific area may become an important issue during securities arbitration.
- Breach of Fiduciary Duty: Often a broker and their client will have a fiduciary relationship with each other. These relationships demand that the broker put their client’s interest above the interests of others. Losses that are perceived to be the result of a breach in the broker’s fiduciary duty to their client can end up being subject to securities arbitration.
- Excessive Mark Ups: The sale of securities at a marked up or inflated rate that are determined to be excessive or fraudulent can result in expensive securities arbitrations mediated by FINRA.
- Margin Abuse: Some investors are not aware of the risk that is inherent in a brokerage account with margin. A margin balance is made when funds are borrowed against an account, instead provided through the sale of a security. The unsuitable use of margin can result in large losses for investors and securities arbitration.
Minimize the Adverse Effect With The Blanch Law Firm
When disputes about money arise, any idea of professional loyalty is usually tossed out the window and all parties involved can become vengeful. The penalties that arise from securities arbitration can easily be in the millions of dollars. When complaints are not handled by experienced securities arbitration attorneys from the onset, the damage that the penalties can cause is very severe. When such penalties are awarded, they can be especially damaging to the cash flow and life of a firm. If you or your firm is faced with possible securities arbitration, you need an experienced white collar firm staffed with skilled securities arbitration attorneys to protect you. Contact the securities arbitration lawyers at The Blanch Law Firm today and begin taking the necessary steps to protect yourself from a potentially devastating adverse impact.
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