If you can’t resolve your complaint by dealing with representatives of the firm, you have other alternatives to help recover the money you have lost. There is a time limit, though, so if you decide to press your claim, you must do it within the specified time period.
Mediation
Through mediation, you and your brokerage firm agree to work with an impartial third person to reach a resolution of your differences. You have the right to be represented by a lawyer at any hearing.
Mediation is less expensive than arbitration or legal action, and it’s often faster. In addition, it’s not binding. That means both parties have to agree to the settlement before it becomes final.
Arbitration and legal action
In most cases, your last resort is taking the case to arbitration. That’s because most brokerage firm clients sign an agreement when they open an account agreeing to arbitration as the way to resolve disputes. And most brokerage firms are required to go to arbitration if you request it.
Arbitration can be handled in a number of ways, so you may want to get legal advice on the approach that seems best in your case. Remember, arbitration is binding, and you can’t appeal the decision.
