The Securities Arbitration Process
Appointment of Arbitrators
The Director of Arbitration will appoint, as appropriate, an arbitrator or panel of arbitrators. The Director of Arbitration will notify the parties of the names, current affiliations, and 10 years' business histories of the proposed arbitrators. In addition, parties will be informed of any information disclosed pursuant to the Uniform Code and the Code of Ethics for Arbitrators by any arbitrator. The arbitrators will be informed of the names of the parties to the dispute, counsel, witnesses, and the nature of the issues raised. If any arbitrator determines that he or she cannot render a fair and impartial award, the Director of Arbitration will appoint a substitute arbitrator.
In a small claim, if the arbitrator believes the controversy is such that additional expertise is needed, he or she can direct that an arbitration panel be formed with two additional arbitrators. The majority of this panel will be from the public. The arbitrator also may request that a hearing be held or that additional documentation be provided.
About this Information
This information has been prepared by the Securities Industry Conference on Arbitration (SICA), a group composed of representatives of various self-regulatory organizations, the Securities Industry Association, and public members. SICA established a uniform system for the resolution of disputes involving investors and broker/dealers, which has been adopted by each of the self-regulatory organizations.
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