Key Takeaways

• Almost every brokerage account agreement requires disputes to be decided in arbitration before the Financial Industry Regulatory Authority (FINRA), not in court.
• A broker’s recommendation must be in your best interest in light of your age, income, goals and tolerance for risk. A firm must supervise its brokers.
• FINRA will not hear a claim more than six years after the event that gave rise to it. Other legal deadlines can be shorter.
• More than half of FINRA arbitration cases end in a settlement. FINRA reports that 59% of the cases closed in 2025 were settled.

Common Broker Misconduct Claims

• Unsuitable recommendations. Investments that did not fit your age, finances or goals, such as speculative or illiquid products sold to a retiree who needed income and safety.
• Overconcentration. Too much of your savings placed in one stock, one sector or one type of product.
• Excessive trading (churning). Frequent buying and selling that generated commissions for the broker and losses for you.
• Unauthorized trading. Trades made without your approval in an account where the broker had no discretion.
• Misrepresentation and omission. A product described as safe, guaranteed or liquid when it was not, or risks and fees that were never explained.
• Failure to supervise. A firm that ignored warning signs about its broker.
• Selling away. Investments sold outside the firm’s approval, often private deals that later collapse.
• Elder financial exploitation. Taking advantage of an older client’s trust, declining health or reduced capacity.

Products That Often Lead to Claims

Certain products appear again and again in customer cases because they pay high commissions and are hard to sell once things go wrong. They include non-traded real estate investment trusts, private placements, variable annuities, structured notes, options strategies, margin accounts and leveraged or inverse funds held long term. If most of your loss came from one of these, tell us which one.

How FINRA Arbitration Works

• Statement of claim. We file a written claim describing what happened and the damages you seek.
• Answer. The firm and the broker respond in writing.
• Arbitrator selection. Each side ranks and strikes names from a list. Claims over $100,000 are generally heard by three arbitrators. Smaller claims are heard by one, and claims of $50,000 or less are decided on the papers unless the customer asks for a hearing.
• Document exchange. FINRA requires each side to produce standard categories of documents, including the firm’s records on your account and on the broker.
• Mediation. Many cases settle here.
• Hearing and award. If the case does not settle, it is tried before the arbitrators, who issue a written award. FINRA reports that cases decided after a hearing took about 16 months on average in 2025.

An arbitration award is final in almost all cases. There is no jury and very limited right to appeal, which is why the claim has to be prepared properly from the first filing.

Check Your Broker

FINRA’s BrokerCheck is a free public database. It shows where a broker has worked, any customer complaints, regulatory actions and terminations. A history of similar complaints is important evidence, both against the broker and against the firm that kept him or her on.

Investment Advisers

A registered investment adviser is a fiduciary and owes you a duty of loyalty and care. Claims against advisers are not always heard by FINRA. Depending on your agreement, the case may go to court or to a private arbitration service. We review your agreement to determine where your claim belongs.

What Our Firm Does

• Review your account statements, new account forms and communications with the broker.
• Check the broker’s and the firm’s record, and whether the firm is still in business and able to pay an award.
• Calculate your losses, including what the account would have earned if it had been properly invested.
• Prepare and file the statement of claim.
• Represent you through arbitrator selection, document exchange, mediation and the hearing.

Who We Help

• Retirees and people near retirement whose savings were put at risk.
• Widows, widowers and heirs who relied on a family broker.
• Trustees, executors and agents under a power of attorney.
• Business owners and professionals with losses in brokerage or retirement accounts.

Frequently Asked Questions

My account lost money. Does that mean I have a claim?

Not by itself. You have a claim when the loss was caused by something the broker or the firm did wrong, such as recommending an investment that was not suitable for you, trading without permission or hiding the risks. We look at what you were sold and why.

I signed papers saying I understood the risks. Does that end my claim?

No. Firms rely on those forms, but arbitrators look at what you were actually told, whether the forms were filled out accurately, and whether the recommendation was appropriate for someone in your position.

How long do I have?

FINRA will not accept a claim more than six years after the event. Legal time limits under state and federal law can be shorter and can bar a claim even within the six years. Do not wait.

Do I have to go to court?

Usually not. Claims against brokerage firms are heard in FINRA arbitration. FINRA generally holds the hearing at its location closest to where you lived when the events occurred, and many cases settle before a hearing.

What will it cost?

The first conversation is free. If we take your claim, the fee terms are put in writing before any work begins.

Have Your Account Reviewed

Email msiddons@siddonslaw.com with the name of the brokerage firm and the broker, what you were sold and your approximate loss. We will reply with the list of documents we need.