Dispute Resolution October 2009 Edition
Uniform Forms Guide
TABLE OF CONTENTS
Introduction to Dispute Resolution Part One: Filing the Initial Statement of Claim Part Two: Filing Statements of Answer Part Three: Filing Other Claim(s) Part Four: General Information Claim Information Sheet Submission Agreement – Claimants Submission Agreement – Respondents 2 4 9 10 11 14 22 23
UNIFORM FORMS GUIDE
FINRA Dispute Resolution One Liberty Plaza 27th Floor 165 Broadway New York, New York 10006 www.finra.org/arbitration_mediation
Introduction to Dispute Resolution
FINRA sponsors a forum for securities dispute resolution. Our arbitration program administers claims involving customers of brokerage firms and disputes between brokerage firms and their employees. We also offer a full-scope mediation program. Mediation and arbitration are non-judicial methods of resolving disputes between two or more parties. Any type of dispute, claim or controversy arising out of business dealings with any FINRA brokerage firm1 can be resolved in mediation or arbitration.
For more information on our mediation program, please see the publication FINRA Mediation—An Alternate Path to Resolving Securities Disputes, available on our Web site at www.finra.org/arbitration_mediation.
If all parties do not fully settle their claims or you decide to arbitrate your claim without mediation, you may submit your claim to FINRA. In arbitration, an impartial person or panel hears the presentations of the parties, evaluates the evidence and decides how the matter will be resolved. When you choose arbitration to resolve your dispute, you forego the opportunity to have the same matter decided by a court of law because an arbitration award at this forum is final and binding. This Uniform Forms Guide provides information for you and all parties involved in arbitration proceedings. The guide explains how to file an initial Statement of Claim and other pleadings. It also outlines the way pleadings should be served upon the other parties, and provides information and guidance on other aspects of the arbitration process. Parties to FINRA arbitrations or mediations are bound by FINRA’s rules. The Code of Arbitration Procedure 2 contains the formal rules that govern arbitrations and mediations administered by FINRA. The Code is available on our Web site at www.finra.org/arbitration_mediation. Take the time to read and understand the Code. In addition, please review our Web site as it contains additional important information about FINRA’s case administration processes and procedures.
Consider Mediation First
Before you, a potential claimant, initiate arbitration or court litigation, consider mediating your claim since this is a natural first step in the dispute resolution process. Mediation is an informal process in which a mediator facilitates negotiations between disputing parties. The mediator’s role is to help the parties find a mutually acceptable solution to the dispute. In mediation, you and the other parties control: who the mediator will be; when the mediation will occur; and how the dispute will be resolved. Parties who mediate at this forum resolve four out of every five cases. In addition, resolution can be faster and less expensive than in arbitration or litigation. If you and the other parties agree to mediate, you will not give up any right to arbitrate or litigate if a full settlement is not reached.
1 FINRA also provides dispute resolution services for several non-FINRA exchanges through contracted agreements. By agreement with these other exchanges, the exchanges adopt FINRA’s rules and subject the firms registered with the exchanges to FINRA Dispute Resolution’s rules and procedures. The following exchanges have agreements with FINRA for dispute resolution services: American Stock Exchange (AMEX), International Stock Exchange (ISE), Philadelphia Stock Exchange (PHLX), New York Stock Exchange (NYSE), NASDAQ and...
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