1. Filing the Statement of Claim and Paying Filing Fees
A FINRA arbitration begins with the documents required to initiate the proceeding. The filing process generally includes a Statement of Claim, an executed Submission Agreement, and the applicable filing fee.
Statement of Claim and Submission Agreement
Within the Financial Services Litigation context, a claimant can initiate a qualifying FINRA arbitration by filing a Statement of Claim and an executed Submission Agreement with FINRA. The Statement of Claim should describe the basic facts of the dispute and the relief sought.
FINRA does not prescribe the same formal pleading format used for a court complaint. The claimant may also submit supporting documents relevant to the asserted claims through the applicable FINRA filing process.
Claimant Filing Fees
A claimant generally must submit the applicable filing fee with the claim. Under FINRA Rule 12900, the filing fee varies according to the amount in dispute, with separate provisions applying when the monetary amount is unspecified.
FINRA generally does not process a claim when the required filing fee has not been paid, subject to applicable fee-waiver or deferral provisions. The filing requirements should therefore be reviewed together rather than treating the Statement of Claim as the only document needed to begin the case.
2. Answer and Early Case Deadlines
Once a claim has been initiated, the respondent faces separate procedural obligations. The answer deadline is distinct from the claimant's initial filing requirements.
The 45-Day Answer Period
Under FINRA Rule 12303, a respondent generally has 45 days from receipt of the Statement of Claim to serve each other party with an answer and an executed Submission Agreement. The respondent must also file the answer and Submission Agreement with FINRA.
The answer should identify the relevant defenses and respond to the allegations in the Statement of Claim. Failure to answer on time can affect the respondent's ability to present facts or defenses at the hearing under the applicable FINRA rules.
3. Arbitrator Selection and Ranking Procedures
FINRA uses its Neutral List Selection System to generate arbitrator lists for applicable cases. Panel composition and list procedures vary according to the type and size of the arbitration.
Striking and Ranking Arbitrators
The applicable Arbitration rules allow parties to exercise strikes and rank eligible arbitrators on the lists provided by FINRA. The precise number and composition of the lists depend on whether the matter proceeds before one arbitrator or a three-arbitrator panel.
Applicable FINRA panel-selection rules generally require ranked lists to be returned within 20 days after the Director sends the lists to the parties. If FINRA does not timely receive a party's ranked list, the selection process can proceed without that party's strikes or ranking preferences.
4. Discovery and Prehearing Exchange Requirements
Discovery and prehearing exchange obligations arise after the arbitration is underway. FINRA distinguishes discovery production from the separate exchange of documents and witness information before the evidentiary hearing.
Discovery Guide and Document Production Lists
In customer disputes, FINRA's Discovery Guide and Document Production Lists identify categories of documents that are presumptively discoverable. Additional discovery requests and objections are governed by separate provisions of the Customer Code.
Electronic records can also become part of discovery. Parties should preserve potentially relevant electronic information when an applicable duty to preserve arises, while production format and related ESI issues can be addressed during the prehearing process.
Twenty-Day Hearing Exchange
Under FINRA Rule 12514, parties generally must provide the other parties with documents and other materials they intend to use at the hearing that have not already been produced at least 20 days before the first scheduled hearing date. Parties must also identify the witnesses they intend to present within that period.
Documents or witnesses not disclosed in accordance with Rule 12514 generally cannot be presented at the hearing unless the panel finds good cause for the failure to disclose them. The rule therefore includes an exception rather than imposing automatic exclusion in every late-disclosure situation.
5. Written Motions and Panel Rulings
Parties may seek procedural or discovery-related relief through written motions during the arbitration. FINRA establishes briefing requirements for general motions while applying separate provisions to certain motions to dismiss.
Motion Deadlines under Rule 12503
Under FINRA Rule 12503, a party making a motion must first make an effort to resolve the issue with the other parties. A written motion generally must be served at least 20 days before a scheduled hearing unless the panel decides otherwise.
The opposing party generally has 10 days after receiving a written motion to respond, subject to an agreed extension or a different direction from the Director or panel. Certain motions to dismiss follow different filing and response deadlines and should not be treated as ordinary Rule 12503 motions.
Discovery and Procedural Orders
FINRA panels have authority to resolve discovery disputes and issue procedural rulings within the scope of the arbitration rules. Failure to comply with discovery obligations or panel orders can support sanctions when the requirements of the applicable FINRA provisions are satisfied.
These issues can overlap with broader Securities Litigation concerns when the underlying dispute involves securities transactions, registered firms, or associated persons. The available procedural response depends on the nature of the claim and the order at issue.
6. Frequently Asked Questions
How does a claimant start a FINRA arbitration proceeding?
A claimant generally begins by filing a Statement of Claim, an executed Submission Agreement, and the applicable filing fee through FINRA's filing process. The Statement of Claim describes the dispute and the relief requested.
What is the deadline for a respondent to file an answer in FINRA arbitration?
Under FINRA Rule 12303, a respondent generally has 45 days after receiving the Statement of Claim to serve the other parties with an answer and executed Submission Agreement and file those documents with FINRA.
What happens if a party does not return an arbitrator ranking list on time?
If FINRA does not timely receive a ranked list, the applicable panel-selection rules permit the process to proceed without that party's strikes or ranking preferences. FINRA's rules also address the Director's authority concerning extensions of Code deadlines.
How are documents and witnesses exchanged before the hearing?
FINRA Rule 12514 generally requires parties to provide documents and other materials they intend to use that have not already been produced and identify intended witnesses at least 20 days before the first scheduled hearing date. A panel can permit otherwise undisclosed material or witnesses when good cause exists.
01 Oct, 2026
