The Financial Industry Regulatory Authority, Inc. (FINRA), is a private, not-for-profit organization authorized by Congress that acts as a self-regulatory organization— an organization that has some degree of regulatory authority over a particular industry or profession. FINRA’s mission is to promote honesty and fairness in the securities industry by protecting investors and ensure that financial markets operate with integrity and in compliance with relevant rules and regulations. FINRA has regulatory oversight over all member brokerage firms—financial institutions involved in the buying and selling of securities—and exchange markets that do business with the public.
As part of its mission, FINRA is responsible for regulating trading in equities, corporate bonds, securities futures, and options; licensing individuals as brokers and admitting firms to the securities industry; conducting regulatory exams; determining rules and regulations; and overseeing brokerage firms’ compliance with regulations issued by FINRA. The government agency that acts as the ultimate regulator of the securities industry, including FINRA, is the Securities and Exchange Commission (SEC).
FINRA also assists in the resolution of monetary and business disputes between and among investors, brokerage firms, and individual brokers, including employment disputes between employees of brokerage firms and their employers. FINRA operates the largest securities dispute resolution forum in the United States through two non-judicial proceedings: arbitration and mediation. Arbitration is a formal dispute resolution process whereby a single arbitrator or a panel of arbitrators (who must be neutral and third-party to the participants in the arbitration) is appointed and must decide on particular issues based on documents and arguments set forth by both parties. Mediation is a less formal dispute resolution process that is not binding and is based on the parties’ willingness to resolve their issues in a consensual manner. The role of the mediator is to help parties reach a mutually acceptable solution. Arbitration and mediation are two distinct ways of resolving securities and business disputes between and among investors, brokerage firms, and individual brokers and offer a prompt and inexpensive means of resolving issues.
FINRA may be used to adjudicate disputes between employers and employees where their employment contract directs all employment issues to be settled by FINRA. Such disputes often involve individuals who work in the financial services industry, such as employees of brokerage firms. The Harman Firm, LLP, has experience with the arbitration and mediation processes at FINRA and has litigated different cases in that forum dealing with employment discrimination, wrongful termination and hostile work environment.
The Harman Firm, LLP, offers aggressive and resourceful representation to individual brokers who have an employment dispute with their employers. We can guide you through the FINRA process and assist you in reaching a positive resolution of your dispute.
For more information, click the following link to FINRA’s website