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Mediation & arbitration
Even with all the protections and regulations in the securities industry, things do occasionally go wrong between investors and the firms that handle their investments. If you think your financial adviser or
brokerage firm
has mismanaged your account or otherwise breached your contractual relationship, there are ways for you to reach a resolution without an expensive lawsuit. These two methods are mediation and arbitration.
In fact, when you open an account at a brokerage firm, you may be asked to sign an arbitration clause, in which you agree to resolve any disputes through arbitration rather than a lawsuit.
The vast majority of all disputes between investors and securities firms that aren’t settled internally are arbitrated or mediated through the
Financial Industry Regulatory Authority (FINRA),
the main
self-regulatory organization
that supervises brokerage firms and brokers. |
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