Code of Arbitration Procedure

What this video covers

• The two parallel FINRA arbitration codes and which disputes belong in the Customer Code versus the Industry Code
• Why customers have a unilateral right to compel FINRA arbitration without any predispute agreement, while member firms cannot compel customers absent a signed agreement
• The specific disputes that must use the mandatory Industry Code, including compensation, Form U5 defamation, and branch separations
• Why predispute waivers of either arbitration code are void and constitute conduct inconsistent with just and equitable principles of trade
• How the $50,000 simplified arbitration threshold works, why interest and expenses do not count toward it, and why only the customer can demand a live hearing
• What happens in a default proceeding when a respondent fails to participate, and why the claimant still must prove damages capped at the original claim amount
• Why failure to comply with an arbitration award triggers disciplinary suspension under the Code of Procedure, not merely civil enforcement