Wanted: Arbitrators To Hear Investor Disputes
As Wall Street closes out one of its worst-performing chapters in recent memory, a new dilemma is brewing in the world of securities arbitration. The Financial Services Regulatory Authority (FINRA), the independent watchdog of all securities firms doing business in the United States, reports a serious shortage of individuals needed to hear the growing number of arbitration disputes between investors and brokerage firms.
According to data from FINRA, investment arbitration claims in 2008 were up nearly 50% from 2007. In addition, during the first 11 months of 2008, more cases had been filed than were filed in all of 2007. As of November 2008, there were 4,414 broker arbitration claims filed, compared with 2,986 in the prior year.
The rise in claims has put added pressure on FINRA to recruit and train additional arbitrators. Apparently, the shortfall is so critical it has caused FINRA to place an SOS on its Web site, asking people with business and investment experience to consider serving as an arbitrator. Payment for providing these services is $400 per day.
To learn more about the qualifications needed to become an arbitrator, visit FINRA’s Web site at: http://www.finra.org/ArbitrationMediation/Neutrals/BecomeAnArbitrator/index.htm
Our affiliation of securities lawyers is actively involved in advising individual and institutional investors in evaluating their legal options when confronted with subprime and other mortgage-related investment losses.
