Securities industry disputes are resolved through arbitration. A Financial Industry Regulatory Authority (FINRA) arbitration attorney can guide broker-dealers, registered representatives, and associated persons through this process and protect your business interests.
Ryan P. Smith Law, PLC advocates for broker-dealers and associated persons in FINRA arbitration hearings across the country. Having previously worked as an in-house litigator for a large wirehouse, Ryan possesses deep insight into the mechanics of their dispute resolution hearings and the way arbitrators assess evidence, testimony, and procedural claims.
Get a clear, practical read on your firm's compliance posture — no jargon, no Wall Street price tag.
Ryan P. Smith Law, PLC represents broker-dealers, registered investment advisers, and financial professionals in securities law matters. As a former in-house litigator and FINRA attorney, Ryan gained a unique understanding of the rules and regulations that impact FINRA arbitrations.
Arbitration of securities disputes between clients, broker-dealers, and related parties is still widely used. FINRA reports that 2,597 arbitration cases were filed in 2025 and 2,469 in 2024, indicating the ongoing significance of FINRA’s dispute resolution procedure.
FINRA arbitration is the way many disputes between broker-dealers, registered representatives, and customers are resolved. In fact, most brokerage agreements mandate that any disputes must be heard by FINRA’s arbitration panel. When filing a FINRA arbitration claim, the customer initiates a claim by submitting a Statement of Claim.
After receiving the claim, the responding party is allowed to file an Answer to the Statement of Claim. From there, depending on the amount in controversy, either one arbitrator or a panel of arbitrators receives evidence, hears testimony and ultimately issues a decision.
While arbitration hearings are typically less formal than a traditional trial, they still involve the following:
Customer arbitrations arise out of a wide variety of issues involving investment advice, account handling, disclosures, communications, or supervision. Even if a claimant’s claims are without merit, it is still necessary to respond to the allegations in a timely manner and with a well-supported defense.
Documentation regarding the account in dispute, as well as witness testimony, is often important during these hearings. Arbitrators review all of the information provided by both parties before making a determination on liability and damages, if any.
Rather than waiting for a claim to be filed, it can be beneficial to assess the facts of the situation and determine the strengths and weaknesses of the potential claim. A prompt evaluation enables broker-dealers and associated persons to explore their available avenues before significant resources are committed.
FINRA arbitrations are not limited to customers. Industry arbitrations can involve two securities firms or an associated person and a securities firm. These FINRA arbitration cases can address a number of issues, including:
These industry arbitrations can result in large monetary judgments and can impact your ability to be gainfully employed in the securities industry. These situations require a solid understanding of the legal process and requirements for you. A FINRA arbitration lawyer can help you understand these complexities.
Customer complaints, judgments, and disclosures can stay on your CRD record for many years. Under certain circumstances, arbitrators have the ability to expunge information from an individual’s CRD record. Expungement requires that the information in question be false, materially inaccurate, or meet other specific criteria.
To initiate an expungement request, a Statement of Claim must be submitted to FINRA detailing the reasons why the information should be removed. Keep in mind that decisions to expunge information from your CRD record are strictly reviewed by the FINRA arbitration panel, and any judicial review of an expungement award can take a long time before a decision is made.
Firms and associated persons should keep in mind that customer complaints and disclosures can impact their ability to get new business or even gain employment with another broker-dealer. For this reason, expungement of information from your CRD record can be very important.
Before a FINRA arbitration hearing can take place, the parties have the option to utilize FINRA’s mediation services. FINRA mediation can occur before a Statement of Claim is even filed. During mediation, a neutral third party may help the parties discuss their disputes and determine if they can reach a voluntary resolution.
Mediation is different from arbitration in that the mediator does not issue a decision. They only assist in helping both sides reach a decision. If you choose to mediate your dispute, it can help save time and avoid the uncertainty of an arbitrator’s decision.
The rules governing FINRA arbitrations can be found in the FINRA Code of Arbitration Procedure for Customer Disputes and the FINRA Code of Arbitration Procedure for Industry Disputes. There, you can find the rules regarding how to initiate an arbitration claim, the arbitration hearing itself, and the standards that may be used to review evidence.
In addition to the FINRA rules on arbitration, claims related to disclosures on your CRD record may involve the Securities Exchange Act of 1934 rules and reporting requirements. When faced with a FINRA arbitration claim, it is important to understand both FINRA’s rules and any other laws that may apply. As arbitration proceedings are different from traditional litigation, participants should familiarize themselves with the FINRA arbitration process.
When served with a customer claim, engaged in a dispute with your employer, facing a promissory note claim, or seeking expungement, you should consider hiring an attorney who practices FINRA arbitration. FINRA arbitrations are subject to their own procedures and unique rules that differ from typical legal claims. Hire a FINRA arbitration attorney who knows how these hearings work.
An attorney can assist you in evaluating the claims against you, preparing your defense, and determining the most effective way to protect your business interests. If you are seeking expungement from your CRD record, an attorney can help see that you meet all of the requirements and advocate on your behalf during the hearing.
Ryan is a former in-house litigator for a large wirehouse. Throughout his career, Ryan gained knowledge on how these arbitration hearings work, how to prepare for a hearing, and what to expect throughout the process. This experience gives him insight into handling your FINRA dispute.
Ryan continues to use his experience to help broker-dealers and associated persons understand their options when facing a securities arbitration claim. If you are facing a customer dispute, an industry-related claim, or need assistance with your CRD record, Ryan’s experience can be beneficial.
Get straightforward guidance from a CCO for CCOs — schedule your free consultation today.
A: Arbitration awards issued by FINRA are made public by FINRA through its arbitration award database. The award that is posted typically contains the parties, claims asserted, and the arbitrator’s award.
A: Failure to comply with an award by the required deadline could subject the defaulting party to further sanctions such as regulatory action or industry suspension. Since these sanctions can lead to serious professional and financial consequences, parties should be aware of their responsibilities after an arbitration proceeding has ended.
A: Yes, arbitration claims may involve former customers. Customers don’t have to be currently working with the broker-dealer or registered representative to file these types of claims. Many claims arise months, if not years, after the underlying transactions have occurred. This means businesses and their registered individuals often find themselves needing to retrieve old files and client data when addressing accusations from ex-customers.
FINRA arbitrations impact broker-dealers and associated persons all over the United States. Whether you are facing a customer dispute or an industry-related claim, it is important to know your rights and options under the law. Ryan P. Smith Law, PLC represents broker-dealers and associated persons from anywhere in the United States. Contact the Firm today to discuss your FINRA arbitration, mediation, or expungement hearing.
*Images are obtained under license from Canva and other third-party stock image providers, with attribution included where required.
Copyright © 2026 Ryan P. Smith Law, PLC • All Rights Reserved. Disclaimer | Site Map | Privacy Policy. Digital Marketing By: 
