A Comprehensive Guide to Securities Arbitrations

Recover Investment Losses Through FINRA, AAA, or JAMS Arbitration

At Iorio Law PLLC, we help investors nationwide recover financial losses through securities arbitration. Whether you were harmed by a broker-dealer regulated by FINRA or an investment advisory firm governed by the SEC or a state securities regulator, our experienced securities arbitration lawyers can help you pursue justice and financial recovery.

What Is Securities Arbitration?

Securities arbitration is a legal process for resolving disputes between investors and financial professionals outside of the court system. Instead of going before a judge and jury, claims are heard and decided by one or more neutral arbitrators. The decision is final and binding, with limited rights of appeal.

This process is typically:

• Faster than traditional litigation,
• Less expensive than going to court,
• Private, with fewer public filings.

Securities arbitration is the primary method used to resolve disputes involving financial advisors, broker-dealers, and—in many cases—investment advisory firms.

FINRA Arbitration for Broker-Dealer Disputes

Most claims against broker-dealers are resolved through FINRA arbitration (Financial Industry Regulatory Authority), the largest forum for securities disputes in the United States. If you opened a brokerage account, you likely signed an agreement requiring any disputes to be resolved through FINRA’s Dispute Resolution Services.

FINRA arbitration applies to misconduct by:

• Stockbrokers
• Registered representatives
• FINRA-member firms

Types of claims handled include unsuitable investment recommendations, excessive trading, misrepresentations, and failures to supervise. Arbitrators—often former attorneys or finance professionals—review the case and issue a binding decision.

Common FINRA Arbitration Procedures:

• Filing a Statement of Claim
• Discovery and pre-hearing conferences
• Arbitration hearing (in-person or virtual)
• Final award issued by the panel

Depending on the claim’s size, one or three arbitrators will be assigned. Smaller cases (under $50,000) may be decided without a live hearing.

Arbitration Against Registered Investment Advisory (RIA) Firms

Not all investment firms are broker-dealers. Registered Investment Advisers (RIAs) may be regulated either by the U.S. Securities and Exchange Commission (SEC) or by state securities regulators, depending on the size of their assets under management (AUM). Unlike broker-dealers, RIAs are typically not members of FINRA, and their client agreements often specify alternative arbitration forums such as:

• AAA (American Arbitration Association)
• JAMS (Judicial Arbitration and Mediation Services)

Because RIAs are not required to participate in FINRA arbitration, the forum used to resolve disputes is usually determined by the arbitration clause in your advisory agreement.

Common claims involving RIAs include:

• Breach of fiduciary duty
• Unsuitable investment recommendations
• Overconcentration and failure to diversify
• Omission of material risks

Understanding whether your case belongs in FINRA, AAA, or JAMS is critical—our experienced securities arbitration attorneys can review your agreement and help you determine the proper forum.

What Types of Misconduct Can Lead to Securities Arbitration?

Investors can pursue arbitration if they’ve suffered losses due to negligence, fraud, or unethical conduct. We frequently represent clients harmed by:

• Unsuitable Investment Recommendations
• Breach of Fiduciary Duty
• Excessive Trading or Churning
• Failure to Diversify / Overconcentration
• Unauthorized Trading
• Misrepresentation or Omission of Material Facts
• Selling Away
• Failure to Supervise
• Best Execution Failures
• Ponzi Schemes or Fraudulent Investment Vehicles
• Financial Abuse of Elderly or Vulnerable Investors

If you noticed unexplained losses, excessive trades, or investments you didn’t understand or authorize, you may have grounds for a claim.

How Securities Arbitration Works: A Step-by-Step Guide

Free Case Evaluation → Filing a Statement of Claim → Arbitrator Selection → Discovery → Hearing → Final Award.

1. Free Case Evaluation
   We’ll assess your losses and help determine whether you have a viable claim.
2. Statement of Claim Filing
   A formal document is submitted outlining the misconduct and damages sought.
3. Arbitrator Selection
   Depending on the forum, we’ll help select qualified and impartial arbitrators.
4. Discovery Process
   Exchange of documents and information with the opposing party.
5. Hearing (If Required)
   We present your case before the panel—this may include witness testimony, expert reports, and cross-examination.
6. Final Award
   A binding decision is issued by the panel. If successful, you receive monetary damages.

Why Choose Iorio Law PLLC?

We are nationally recognized investor advocates who have helped clients recover nearly $100 million in losses. Our founder, August M. Iorio, is an experienced securities arbitration attorney based in New York City, and he represents clients across the country.

✅ No Upfront Legal Fees – We work on a contingency basis.
✅ Deep Experience – Over 700 arbitration matters handled.
✅ Focused Advocacy – We only represent investors, never brokerage firms.
✅ FINRA and AAA Forum Knowledge – We understand the rules, the procedures, and the nuances.

FAQ: Securities Arbitration

What is the difference between a broker-dealer and a registered investment advisory firm?

Broker-dealers generally make investment recommendations and sell securities to investors for a commission.  FINRA regulates brokers and brokerage firms. 

Registered investment advisers (RIAs) provide investment advice, often for a recurring fee, and are regulated either by the SEC or a state securities regulator, depending on their size.

Do I have to go to court to sue my financial advisor?

Usually not. Most disputes are resolved in arbitration, either through FINRA, AAA, or JAMS, depending on your agreement.

What if I don’t know which forum applies?

We’ll review your agreement and advise you. Generally:

• Broker-dealer → FINRA
• RIA → AAA or JAMS

Can I opt out of arbitration?

Most agreements require arbitration, though some allow opt-outs within a short window. We can help you evaluate your options.

How long does securities arbitration take?

Most cases take 9–14 months from filing to award, depending on the forum and complexity.

Speak with a Securities Arbitration Lawyer Today

If you’ve suffered investment losses due to misconduct by a financial advisor, broker-dealer, or RIA, don’t wait to act. Securities arbitration is time-sensitive, and deadlines may apply under FINRA rules and state laws.

📞 Call Iorio Law PLLC at (646) 330-4624
📧 Email: info@iorio.law
📍 Based in New York. Representing Investors Nationwide.