Who the other side is
Claims against a brokerage firm or its representatives are usually heard in FINRA arbitration, because customer agreements generally require it and FINRA rules let customers demand it. Investment advisers are governed by different rules, and their agreements may call for private arbitration. Disputes with private funds turn on the limited partnership agreement and subscription documents, while disputes with a startup or private company depend on the shareholder agreements and the securities laws that governed the offering. A cross-border investment affected by a foreign government's actions may raise treaty-based arbitration options. Identifying the forum early is important because it shapes deadlines, costs, and how evidence is exchanged.
Building the record
Account statements, trade confirmations, the account opening documents and risk profile you signed, offering documents, and communications with the adviser or company are the core evidence. Notes about conversations can matter, but write them with your lawyer's guidance rather than on your own. Claims commonly involve unsuitable recommendations, misrepresentations or omissions, unauthorized trading, or breach of fiduciary duty, depending on the relationship. Time limits apply, including FINRA's eligibility rules and the limitations periods for securities claims, and some can run out sooner than people expect.
Assessing the claim
In our first meeting, we review the documents, the losses, and your relationship with the other party to identify the legal theories that fit and the forum that will hear them. Market losses alone are not a claim; what matters is whether something the other side did, or failed to disclose, caused the harm. We also look at whether the counterparty or its insurer can pay, since that affects strategy. If you are on the other side, as a firm or adviser facing a customer claim, the same early review applies, along with notice to any insurer whose policy may respond. Bring statements, agreements, and correspondence, along with any list of key dates you already have.
