FINRA—commencing an arbitration under the Customer Code
FINRA—commencing an arbitration under the Customer Code

The following Arbitration guidance note provides comprehensive and up to date legal information covering:

  • FINRA—commencing an arbitration under the Customer Code
  • The Customer Code
  • Starting an arbitration
  • Commencing a claim
  • Filing fees and member surcharges
  • Filing requirements and service of proceedings
  • Amending claims
  • Combining claims
  • Class action claims
  • Shareholder derivative actions
  • more

The Customer Code

The Finance Industry Regulatory Authority (FINRA) has two Codes of Arbitration Procedure. One of them is the Code of Arbitration Procedure for Customer Disputes (the Customer Code), which governs arbitrations between investors and industry parties. For information on commencing arbitration under the other code, the Code of Arbitration Procedure for Industry Disputes (the Industry Code), see Practice Note: FINRA—commencing an arbitration under the Industry Code.

Starting an arbitration

Where an investor dispute arises, FINRA arbitration proceedings will be mandatory in certain circumstances. In other cases, the parties may choose to arbitrate a dispute under the Customer Code. In all cases, claims must be filed within six years of the events giving rise to the dispute (the Customer Code, Pt II, r 12206).

Under the Customer Code, Pt II, r 12200, FINRA arbitration proceedings must be conducted where:

  1. a FINRA arbitration is required by written agreement or requested by the investor

  2. the dispute is between an investor and a member of FINRA or associated person of a member, and

  3. the dispute involves the securities business of the member or associated person

Customers have the right to request arbitration at FINRA's arbitration forum at any time, regardless of any agreement that specifies a forum other than the FINRA arbitration forum (FINRA regulatory notice 16–25). If a member firm fails