Methods of Formal Dispute Resolution

What this video covers

• Why FINRA arbitration is the primary forum for customer and industry disputes, and why awards are final and binding with virtually no appeal
• How the six-year eligibility clock runs from the event itself, not from discovery, and why this is a common exam trap
• What predispute arbitration agreements can and cannot do: highlighting requirements, prohibited limitations on Self-Regulatory Organization (SRO) rules and arbitrator awards, and the ban on class action waivers
• Why class actions are carved entirely out of FINRA arbitration and must go to court, plus the notice requirements for class members who want to arbitrate individually
• How simplified arbitration works for claims of $50,000 or less: one arbitrator deciding on the papers by default, with hearing options only if the customer requests
• The dollar thresholds that determine panel size: one arbitrator up to $100,000, three arbitrators over $100,000, and how parties can contract around these defaults
• Why a customer cannot unilaterally demand an all-public panel, and how public versus non-public arbitrators are composed for standard three-member panels
• The distinction between statutory employment discrimination claims and whistleblower claims in industry arbitration: predispute agreements are allowed for discrimination but prohibited for whistleblower claims
• Why the panel endeavors to issue a written award in 30 business days after the hearing record closes, but monetary awards must be paid in 30 strict calendar days or registration gets suspended