Is Claimant Attendance Required in FINRA Arbitration Hearings?

Question from Dkdjdkdk, Is Claimant Attendance Required in FINRA Arbitration Hearings?

Answer from AI:

When involved in a Financial Industry Regulatory Authority (FINRA) arbitration with a brokerage, claimants often wonder about their role in the hearings. FINRA arbitration is a method to resolve disputes between investors and brokers or between brokerage firms and their employees. It is an alternative to litigation and is generally considered to be faster, less formal, and less expensive.

Claimant’s Role in FINRA Arbitration Hearings

In FINRA arbitration, the claimant is the party who initiates the arbitration process by filing a claim alleging wrongdoing by a brokerage firm or individual broker. The role of the claimant during the arbitration process can vary depending on several factors, including the complexity of the case, the claimant’s preference, and whether the claimant has legal representation.

Attendance at Hearings

• Representation: Claimants can represent themselves in FINRA arbitration, which is known as proceeding pro se, or they can be represented by an attorney. If a claimant chooses to have legal representation, the attorney will handle most aspects of the case, including presenting evidence and arguments at the hearing.
• Claimant Attendance: While claimants are not legally required to attend every hearing, it is generally advisable for them to be present, especially during the final hearing. The final hearing is akin to a trial in court, where both parties present their case to the arbitrators. Claimant attendance can be crucial for several reasons:
  • Providing testimony: The claimant may need to testify and answer questions posed by the arbitration panel or the opposing party.
  • Observing proceedings: Being present allows the claimant to observe the proceedings and provide real-time input to their attorney.
  • Settlement discussions: Sometimes, the opportunity for settlement arises during the arbitration process, and the claimant’s presence can facilitate these discussions.
• Virtual Hearings: In some cases, FINRA may allow for virtual hearings, which can make it easier for claimants to attend without the need for travel.

Exceptions and Considerations

There may be exceptions or special circumstances where a claimant’s attendance is not possible or required. For example, if a claimant is incapacitated or there are other significant hardships, arrangements can be made with the arbitration panel. However, these are exceptions and should be discussed with legal counsel.

Consulting a Legal Professional

It is important for claimants to consult with a legal professional who specializes in securities arbitration to understand their rights and obligations within the process. An attorney can provide personalized advice based on the specifics of the case and represent the claimant’s interests throughout the arbitration.

For more information on the arbitration process, claimants can refer to the FINRA Arbitration and Mediation page. This resource provides an overview of the process, rules, and procedures involved in FINRA arbitration.

Note: The information provided here is for general informational purposes and should not be construed as legal advice. Each case is unique, and the specifics can significantly impact the legal strategy and proceedings. Claimants should seek professional legal advice to address their individual situation.