FINRA Arbitration Rules Investors Should Know
The rules that decide whether a claim can be brought, what must be produced, and who hears it.
FINRA arbitration is governed by the Code of Arbitration Procedure for Customer Disputes, the rulebook that sets out eligibility, arbitrator selection, discovery, and hearing procedure for investor claims.
A handful of these rules determine most of what matters to an investor deciding whether to bring a claim. The authoritative text is published by FINRA and should be consulted directly, since rules are amended over time. The current rulebook is available from FINRA.
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Ask Us About the Rules in Your Case
The Rules That Matter Most
These are the provisions that most often decide whether and how a customer claim proceeds.
When a Firm Must Arbitrate
FINRA’s rules require a member firm to arbitrate a customer dispute when the customer requests it and the dispute arises from the firm’s business activities. This obligation exists independently of whatever the account agreement says.
The Eligibility Limit
The Code sets an outer limit on how old a dispute can be and still be submitted to the forum, measured from the occurrence or event giving rise to the claim. Separate statutes of limitation may also apply to the underlying causes of action, and they are not the same thing.
Suitability and Best Interest
FINRA’s suitability rule requires a reasonable basis to believe a recommendation is suitable for the customer. For retail customers, Regulation Best Interest imposes a further standard on broker-dealers and their associated persons.
The Discovery Guide
FINRA publishes a Discovery Guide listing documents presumptively exchangeable in customer cases. It shapes what a firm must produce without a specific request and is a practical starting point for discovery.
Panel Composition
The rules determine how many arbitrators hear a case and how they are selected, based principally on the amount in dispute. Customers have the ability to influence panel composition through the ranking and striking process.
Simplified and Special Procedures
Smaller claims may qualify for simplified procedures decided on the documents, and the Code contains distinct procedures for certain categories of dispute.
When IBL Is Engaged
Rule questions usually surface at predictable moments.
When eligibility is in doubt. Whether a claim is too old for the forum is often the first question, and it is not always obvious.
When a firm resists arbitration. Whether the dispute belongs in the forum can itself be contested.
When discovery stalls. The Discovery Guide is the lever for obtaining supervisory and due-diligence records.
When choosing a panel. Panel composition rules affect who ultimately hears the case.
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Tell Us About Your Matter
How IBL Applies the Rules
Eligibility Analysis +
Whether the claim falls within the forum’s eligibility limit and what statutes of limitation apply
Forum and Venue +
Whether the dispute belongs in FINRA arbitration and where the hearing will be held
Suitability Assessment +
The recommendation measured against the applicable suitability and best interest standards
Discovery Guide Practice +
Presumptively discoverable documents pursued, and objections tested before the panel
Panel Composition Strategy +
Panel size and composition assessed, with rankings and strikes used deliberately
Procedural Motions +
Procedural and discovery motions presented at prehearing conferences
Hearing Procedure +
Hearing conducted under the Code’s evidentiary and procedural provisions
FAQ
01 • Securities How far back can a FINRA claim reach?
The Code sets an eligibility limit measured from the events giving rise to the dispute, and separate statutes of limitation may apply to the underlying claims. Because the two operate differently, an eligible claim can still be time barred, and the analysis should be done early.
02 • Securities Is FINRA arbitration mandatory?
Where the account agreement contains a predispute arbitration clause, arbitration is generally the forum. Separately, FINRA rules require a member firm to arbitrate at a customer’s request in disputes arising from its business.
03 • Securities What is the suitability rule?
It requires a broker to have a reasonable basis to believe a recommendation fits the customer’s investment profile, including objectives, time horizon, and risk tolerance. Regulation Best Interest adds a further standard for retail recommendations.
04 • Securities What must the firm turn over in discovery?
FINRA’s Discovery Guide identifies categories of documents presumed discoverable in customer cases, which typically include account records, communications, and supervisory materials.
05 • Securities How many arbitrators will hear my case?
It depends principally on the amount in dispute. Smaller claims may be heard by a single arbitrator or decided on the papers, while larger claims are heard by a three-arbitrator panel.
Talk to a Securities Attorney
Tell us when the events occurred and what you were sold, or call (202) 860-1210.
This page provides general legal information about FINRA arbitration and does not constitute legal advice or create an attorney-client relationship. Rules, procedures, and case law change. Information is current as of August 2026. Prior results do not guarantee a similar outcome.