Securities dispute resolution: Filing a complaint

Filing a complaint and fee

Originally prepared by Lucia Benabentos of the Cornell Law School Securities Law Clinic.

Once the decision is made to pursue arbitration, a Statement of Claim must be drafted and filed with FINRA. The Statement of Claim includes the dollar amount of damages requested, and the type of claims being made. It also includes an explanation of the facts that gave rise to the claim and the basis for the damages. In the securities industry, the party may make two types of claims: legal claims and industry-specific claims. Legal claims are made for violation of legal rights (i.e.: fraud, negligence, misrepresentation). Industry-specific claims can be made for violation of industry rules (i.e.: suitability, excessive trade, commingling). FINRA reviewed Statements of Claims for the minimum requirements of a properly signed Submission Agreement, proper fees, and sufficient copies of the Statement of Claim. Any deficiencies can delay the process.

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