Methods of Formal Dispute Resolution
Chapters in this video
- 0:00 The two arbitration rulebooks: customer versus industry disputes
- 1:47 Class actions, waivers, and what arbitration clauses cannot block
- 2:43 Predispute agreements: firm choice, not regulatory mandate
- 3:53 Simplified arbitration at $50,000 or less: papers, not hearings
- 5:00 Panel size thresholds: $100,000 triggers three arbitrators
- 5:50 Public versus non-public arbitrators and the all-public panel right
- 6:40 Mandatory industry arbitration and the two court exceptions
- 7:18 Timeline, 30 business day award rule, and unpaid award consequences
- 8:29 Rapid-fire exam recap
What this video covers
- The two Codes of Arbitration Procedure: customer disputes versus industry disputes, and which governs each party relationship
- What predispute arbitration agreements can and cannot do, including the disclosure and highlighting requirements
- Why class action claims cannot be brought in FINRA arbitration and why class action waivers are prohibited
- The $50,000 simplified arbitration threshold: single arbitrator, decided on the papers by default, with customer opt-in for hearings
- How claim size dictates panel size: 1 arbitrator at $50,001 to $100,000, 3 arbitrators over $100,000 or unspecified amounts
- Default panel composition for customer disputes (2 public, 1 non-public) and the customer's absolute right to demand an all-public panel
- Mandatory arbitration for industry disputes, plus the two exceptions that escape to court: statutory employment discrimination and whistleblower claims
- The 12-to-18 month timeline, the 30 business day award deadline after hearing close, and CRD consequences for unpaid awards
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