For investors, brokers and firms who are more flexible and looking for a faster solution, FINRA also provides mediation between two disputing parties. Mediation is an informal process where a “trained, impartial mediator facilities negotiations between disputing parties, helping them find a mutually acceptable solution,” according to FINRA. For a mediation to be successful, both parties must agree to the mediation. The process is voluntary, thus allowing either party to stop it at any time. 

FINRA points out mediation and arbitration are not a means to solving an investor complaint. If an investor feels a brokerage firm or individual broker has acted unjustly, he or she can file a direct complaint with FINRA. The organization lists several prohibited conduct in the securities industry. Here are a few of them that are listed on FINRA’s website:

  • Purchasing and selling securities for a customer without the customer’s knowledge and authorization;
  • Failing to disclose risks to securities like charges and fees, bond ratings, company financial information, and other vital material investors need when making a decision;
  • Using manipulation, deception or outright fraud in order to produce a sale or purchase of a security. 

FINRA is a multifaceted organization that promotes itself as protecting investors. For anyone who invests and works with brokers, knowing FINRA’s rules and regulations is key to ensuring you and your money are treated fairly. 

The Spencer Law Firm’s attorneys are well versed in FINRA proceedings such as FINRA arbitration and enforcement actions.  If you have any questions regarding FINRA or if you have a FINRA arbitration or enforcement action and need assistance, please feel free to call Bonnie Spencer at the Spencer Law Firm at (888)237-459 to see what we can do for you. You can also visit us at or at our office at 4635 Southwest Freeway, Suite 900, Houston, Texas, 77027. 

If you have a question or comment for us, you can also contact the Spencer Law Firm on our website