Any type of dispute, claim, or controversy arising out of your business dealings with a brokerage firm may be resolved in arbitration or mediation. Mediation is an informal, voluntary approach in which the mediator facilitates negotiations between disputing parties, helping them to find their own mutually acceptable resolution. What distinguishes mediation from other forms of dispute resolution is that the mediator does not impose the solution, but rather, helps make it possible for the parties to craft and accept the solution themselves. Arbitration is a dispute resolution mechanism to help determine if aggrieved parties are entitled to recover damages. In arbitration, an impartial person or panel hears all sides of the issues as presented by the parties, studies the evidence, and then decides how the matter should be resolved.
Arbitration is final and binding, subject to review by a court only on a very limited basis.
Generally, dispute resolution methods such as mediation and arbitration are faster and less expensive than a state or federal lawsuit. They are also less formal than a court trial. Furthermore, NASD Regulation arbitrators and mediators are carefully selected from a broad cross-section of people, diverse in culture, profession, and background. To receive more specific information about NASD Regulation's arbitration or mediation facilities or the forms needed to begin the process, contact one of NASD Regulation's Dispute Resolution offices . A Comparison Of Mediation And Arbitration Mediation Arbitration Expedited negotiation.