FINRA—procedure under the Industry Code
FINRA—procedure under the Industry Code

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

  • FINRA—procedure under the Industry Code
  • Pre-action considerations
  • General procedural provisions
  • Procedure
  • Depositions

The Financial Industry Regulatory Authority (FINRA) is an independent regulatory body overseeing the US securities industry. As part of its role, FINRA operates the largest dispute resolution body in the securities industry. It works to resolve monetary and business disputes between investors, brokerage firms and individual brokers, as well as disputes between and among brokerage firms and individual brokers.

The disputes are dealt with using FINRA’s own arbitration procedure. FINRA has two Codes of Arbitration Procedure:

  1. the Code of Arbitration Procedure for Customer Disputes (the Customer Code or Section 12000 of the FINRA Rules)—which governs arbitration proceedings between investors and industry parties, and

  2. the Code of Arbitration Procedure for Industry Disputes (the Industry Code or Section 13000 of the FINRA Rules)—which governs arbitration proceedings between industry parties

This note concerns the Industry Code only. For procedure under the Customer Code, see Practice Note: FINRA—procedure under the Customer Code.

Pre-action considerations

Limitation period

Under the Industry Code, Pt II, r 13206, a claim must be brought within six years of the occurrence or event giving rise to the claim. This rule does not apply where a claim has been directed to arbitration by a court of competent jurisdiction at the request of a brokerage firm or broker.

Any time limits for filing a claim in court will be tolled when a claimant files a