A new Financial Industry Regulatory Authority (FINRA) rule may make it easier for small investors to recover investment losses. Effective July 23, 2012, the new FINRA Rule 12800, relating to Simplified Arbitration, will apply to arbitrations involving $50,000 or less, exclusive of interest and expenses. The previous cap was $25,000. This change should make it easier for investors to recover who have suffered relatively smaller losses as the result of misconduct or wrongdoing.
Simplified arbitration provides a relatively streamlined, lower-cost way to hear claims that might otherwise not be economically feasible for claimants to bring. Generally, a single arbitrator decides the case based entirely upon the paper submissions filed by the parties, without an in-person hearing or telephonic conference. While the rule provides that the parties may obtain discovery, and the arbitrators have discretion to require parties to produce documents responsive to relevant portions of FINRA's document production lists, in practice, discovery is usually not undertaken.
You need to be very careful and attach all relevant documents to the statement of claim, so that the arbitrator has everything needed to decide the case. And then you need to connect the documents to your argument to be sure you have a chance at recovery.
But many experienced FINRA arbitration attorneys agree, the procedure is not without risk. The absence of any dialogue with the arbitrator makes it difficult to advocate an investor's complaint.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
Simplified arbitration provides a relatively streamlined, lower-cost way to hear claims that might otherwise not be economically feasible for claimants to bring. Generally, a single arbitrator decides the case based entirely upon the paper submissions filed by the parties, without an in-person hearing or telephonic conference. While the rule provides that the parties may obtain discovery, and the arbitrators have discretion to require parties to produce documents responsive to relevant portions of FINRA's document production lists, in practice, discovery is usually not undertaken.
You need to be very careful and attach all relevant documents to the statement of claim, so that the arbitrator has everything needed to decide the case. And then you need to connect the documents to your argument to be sure you have a chance at recovery.
But many experienced FINRA arbitration attorneys agree, the procedure is not without risk. The absence of any dialogue with the arbitrator makes it difficult to advocate an investor's complaint.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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