Moreover, industry parties to arbitration are usually represented by an attorney. Even though the SRO staff and arbitrators may try to be helpful to explain the process to investors who do not have a lawyer, they cannot act as an investor's lawyer. An investor who brings a case should not expect someone else to act on his or her behalf. Decisions by arbitrators are final and binding, and the SEC and SROs cannot change or overturn an award by arbitrators. Some states' laws may have different time requirements.
Disputes come to arbitration through one of two routes.
All SROs require their members and members' employees to arbitrate disputes with customers at the customer's request. In addition, many securities firms have arbitration clauses or stipulations in the documents that investors sign when opening an account or using some special service from the firm. Since courts regard these arbitration contracts as binding, an investor signing such a contract cannot take a dispute to court. Some disputes, nonetheless, may be resolved in the courts. To determine whether a dispute can be resolved in court, an investor should talk to a lawyer.