Although most business in the securities industry is completed without a problem, disputes and controversies occasionally arise. Arbitration is not an extension of NASD Regulation's disciplinary procedures, which result in sanctions being imposed for violations of rules. Rather, arbitration is a dispute resolution mechanism designed to help aggrieved parties recover damages. The principal benefit of arbitration is that it provides a prompt, inexpensive alternative to litigation in the courts. The rules are based on the Uniform Code of Arbitration developed by the Securities Industry Conference on Arbitration.
Arbitration is final and binding, subject to review by a court only on a very limited basis.
In an arbitration proceeding, impartial persons knowledgeable in the areas of controversy hold a hearing, listen to oral arguments, review the evidence, and render a decision. Inc. All rights reserved. Please read our Copyright and Trademark notices and Disclaimer .