September 22, 2010 Comments (0) Blog, Securities Fraud

FINRA Arbitration Statistics

(Last Updated On: July 17, 2015)

FINRA recently published statistics on the securities cases that it administers through its FINRA Dispute Resolution process.  The statistics reveal that case filings are slightly down from 2009, and that the administration time for cases is slightly longer than in 2009.  The statistics are also broken down to show the number of cases filed for each “type of controversy” (i.e. the number of cases filed involving margin calls, churning, unauthorized trading, suitability, etc.) and the number of cases filed for each type of investment product (i.e. annuities, mutual funds, bonds, common stocks, options, limited partnerships, etc.).  Finally, the statistics offer a breakdown of how customers are fairing at hearing.

Here are the statistics published by FINRA (for more information on these statistics, visit http://www.finra.org/ArbitrationMediation/AboutFINRADR/Statistics/index.htm

New Case Filings through August:

2008 2009 2010 2010 vs 2009
3,018 4,994 3,778 -24%

Turnaround Time* (in months) through August:

2008 2009 2010 2010 vs 2009
Overall 13.1 11.6 12.3 6%
Hearing Decisions 16.1 14.5 14.7 1%
Simplified Decisions 6.5 6.1 6.4 5%

Arbitration Cases Served by Controversy Involved

Type of Controversy*

2006

2007

2008

2009

August 2010

Margin Calls

103

45

64

128

57

Churning

257

133

212

306

189

Unauthorized Trading

242

174

248

478

288

Failure to Supervise

1,425

830

1,029

2,691

1,605

Negligence

1,619

891

1,602

3,405

1,870

Omission of Facts

588

275

1,201

2,453

1,352

Breach of Contract

1,397

953

1,658

2,802

1,490

Breach of Fiduciary Duty

2,621

1,616

2,836

4,206

2,183

Unsuitability

1,347

695

1,181

2,473

1,324

Misrepresentation

1,187

739

2,005

3,408

1,811

Online Trading

8

1

3

0

0

Security Types Involved in Arbitration Cases

Type of Security*

2006

2007

2008

2009

August 2010

Corporate Bonds

82

71

163

373

179

Certificates of Deposit

28

16

31

71

24

Mutual Funds

679

395

1,069

1,556

605

Options

155

110

149

275

114

Common Stock

1,257

790

773

1,367

623

Limited Partnerships

21

19

33

73

56

Annuities

446

243

236

300

143

Preferred Stock

35

26

115

481

166

Variable Annuities**

47

123

64

Derivative Securities**

801

607

172

Auction Rate Securities**

299

276

114

Results of Customer Claimant Arbitration Award Cases

Year Decided

All Customer Claimant Cases Decided (Hearings & Paper)

Percentage Decided of All Customer Claimant Cases Closed

Percentage (and Number) of Cases Where Customer Awarded Damages*

2005

1,610

23%

43% (687 cases)

2006

1,011

19%

42% (425 cases)

2007

671

18%

37% (245 cases)

2008

474

20%

42% (199 cases)

2009**

669

21%

45% (304 cases)

2010

555

18%

50% (279 cases)

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