Simplified Arbitrations

Three Ways to Present Your Case to Arbitrators

When the amount in dispute is $50,000 or less (not including interest and expenses) no hearing will be held, unless the customer under FINRA Rule 12800 of the Code of Arbitration Procedure for Customer Disputes or claimant under FINRA Rule 13800 of the Code of Arbitration Procedure for Industry Disputes (Codes) requests a hearing. All provisions of the Codes apply to simplified cases, except where noted.

  1. No Hearing - Arbitrator Decides Case After Reviewing Parties’ Written Submissions

    If no hearing is requested, an arbitrator will decide the case based on the parties’ pleadings and other written submissions. These cases are referred to as “paper” cases because an arbitrator makes a decision based solely on the documents submitted.

  2. Special Proceeding

    A Special Proceeding provides an abbreviated hearing by video conference that incorporates many aspects of a standard arbitration hearing. Special Proceedings differ from regular hearings in the following ways:

    • An arbitrator will hear the case by video conference unless the customer (in a customer case) or claimant (in an industry case) requests at least 60 days before the first scheduled hearing that it be held by telephone, or all parties agree to another type of hearing;
    • Claimants, collectively, and respondents, collectively, each have two hours to present their cases and one-half hour for rebuttal and closing statements;
    • The hearing will be completed in one day with no more than two hearing sessions;
    • The parties may not question an opposing party’s witnesses; and
    • The parties may not call an opposing party as a witness.

    For more detailed information about Special Proceedings, please see Regulatory Notice 18-21.

    If a party wishes to have interpretation services at the hearing, generally, the requesting party will be responsible for arranging the service and any related costs. A party experiencing financial difficulties can submit a request for a waiver of interpretation services fees to their arbitration case administrator no later than 60 days before the video conference. If the waiver is granted, FINRA will be responsible for arranging interpretation services and the cost of the interpreter. For more information about requirements for a waiver request, please see: Fees web page.

    For a complete discussion of an arbitrator’s responsibilities during a Special Proceeding, please watch this short video:

  3. Regular Hearing

    The parties and arbitrator will follow the regular provisions of the Codes and appear at an in-person hearing. With regular hearings there are no limits on the length of a hearing, questioning an opposing party’s witness or calling an opposing party as a witness. For more information about the process, please see our web page about FINRA’s Arbitration Process.

Important Note: If a customer or claimant under the Codes does not expressly choose either a Special Proceeding or regular hearing, an arbitrator will decide the case based on the parties’ pleadings and other written submissions, i.e., as a paper case.

Timeline

On average, simplified cases decided on the papers and by Special Proceeding are substantially faster than regular hearing cases. For current case processing times, please see our Dispute Resolution Statistics webpage.

Fees

Claimants must submit filing fees at the time of filing the Statement of Claim or request a hardship waiver. The amount of this fee is based on the total amount of the claim including any punitive and treble damages but excluding interest and expenses. Filing fees for simplified cases range from $50 to $600 depending on the size of the claim. For more information about fees and hardship waivers, please see our Fees web page.

Discovery

  • All Cases

    Discovery is when the parties exchange documents to obtain facts and information from other parties in the arbitration to support their own cases. The Codes require parties to cooperate with each other to the fullest extent practicable in the voluntary exchange of documents and information to expedite the arbitration process. The Codes contain rules that govern the discovery process, including making discovery requests, responding to such requests, objecting to discovery requests, and arbitrator authority to issue sanctions against parties for discovery abuses.

    As provided in the rules, there are also Document Production Lists in the Discovery Guide which may apply to a customer case. The Document Production Lists provide the documents that should be exchanged by claimants and respondents in customer cases, depending on the types of issues. When the Document Production Lists apply, the documents are presumptively discoverable, but arbitrators and parties retain flexibility in this process. For more information about when the Document Production Lists apply in simplified customer cases, see below.

    For more information about the discovery process, please see our Discovery web page.

  • Customer Cases Filed on or After March 3, 2025

    When a customer requests a regular hearing, the Document Production Lists automatically apply to all parties. Parties can also make other discovery requests. Please see our Discovery web page for more information about the discovery process.

    When a customer case will be decided on the papers or by Special Proceeding, the customer may request that the Document Production Lists apply to all parties. Customer claimants must make the request when filing their Statement of Claim. Customer respondents must make the request no later than their answer due date, regardless of any party agreement to extend an answer due date.

    If a customer timely elects to have the Document Production Lists apply in a paper case or Special Proceeding, that election would trigger production obligations for both customer and industry parties. The documents on List 1 would be presumptively discoverable by customers, and the documents on List 2 would be presumptively discoverable by member firms and associated persons. Prior to electing to have the Document Production Lists apply in a paper case or Special Proceeding, customers may review the Document Production Lists in the Discovery Guide. For more information see FINRA Rule 12800(g)(1).

    If the customer does not timely elect to apply the Document Production Lists in a paper case or Special Proceeding, parties can still make other discovery requests. All requests for the production of documents and other information must be served on all other parties, and filed with FINRA, within 30 days from the date that the last answer is due. Any response or objection to a discovery request must be served on all other parties, and filed with FINRA, within 10 days of receipt of the discovery request. For more information, see FINRA Rule 12800(g)(2).

  • Customer Cases Filed Before March 3, 2025

    When a customer requests a regular hearing, the Document Production Lists automatically apply to all parties. Parties can also make other discovery requests. Please see our Discovery web page for more information about the discovery process.

    When a customer case will be decided on the papers or by Special Proceeding, the Document Production Lists do not apply to any party. However, parties can still make discovery requests. All requests for the production of documents and other information must be served on all other parties, and filed with FINRA, within 30 days from the date that the last answer is due. Any response or objection to a discovery request must be served on all other parties, and filed with FINRA, within 10 days of receipt of the discovery request. For more information, see FINRA Rule 12800(g).

  • Industry Cases

    The Document Production Lists do not apply to industry cases. However, parties can still make discovery requests. If the claimant requests a regular hearing, please see our Discovery web page for more information about the discovery process. If the industry case will be decided on the papers or by Special Proceeding, all requests for the production of documents and other information must be served on all other parties, and filed with FINRA, within 30 days from the date that the last answer is due. Any response or objection to a discovery request must be served on all other parties, and filed with FINRA, within 10 days of receipt of the discovery request. For more information, see FINRA Rule 13800(d).

Increases in Amount in Dispute

If any party increases the amount in dispute to more than $50,000, the arbitration will no longer be administered under FINRA Rule 12800 or 13800, and the regular provisions of the Codes will apply.

View the following resources for additional information: