FINRA Study Exam Questions with
Complete Solutions41
Mediation - ANSWERS-Arbitration and ______ are two distinct methods of resolving securities
disputes between two or more parties. Disputes, claims or controversies arising out of business
dealings with any FINRA brokerage firm can be resolved in arbitration or ______.
Arbitration - ANSWERS-______ is a formal dispute resolution process in which the parties—
customers, brokers, or brokerage firms making or responding to a claim—select a neutral, third
party called a(n) ______, to listen to the arguments set forth by parties, study the testimonial
and/or documentary evidence, and render a decision on the matter. By ______ your claim, you
forego the opportunity to have the same matter decided by a court of law because an ______
award is final and binding.
Mediation - ANSWERS-______ is an informal, voluntary and non-binding process. A(n) ______
facilitates negotiations between disputing parties. The ______'s role is to help the parties find a
mutually acceptable solution to the dispute.
First - ANSWERS-Arbitration and mediation are important methods of dispute resolution that
have been used successfully by the securities industry and others, but they generally should not
be your ______ steps.
Arbitration - ANSWERS-______ is a method of resolving a dispute between two or more parties
by neutral, qualified individuals, who serve as decision-makers after weighing the facts of each
case presented. The decision-makers are called ______. ______ of securities disputes against
brokerage firms, brokers, or both provides a prompt and inexpensive means of resolving issues.
There are certain laws governing the conduct of an ______ proceeding. The most important of
these is perhaps the fact that an ______ award is final and binding, subject to review by a court
only on a very limited basis. Parties should also recognize that ______ their claims precludes
them from pursuing the same claims through the courts.
,Request for Mediation - ANSWERS-You may file a ______ ______ ______ at any time, whether
or not you have already filed an arbitration claim. However, ______ is a voluntary process — no
party is required to ______ a dispute. When we receive your request, FINRA Dispute Resolution
staff will contact the other party or parties to the dispute to explain the ______ process, and
seek their agreement to ______.
Mediation - ANSWERS-Initiate a ______: This is the first step of the ______ process. When one
party expresses an interest in ______, FINRA will contact the other parties to determine their
interest, The parties may submit all or some of the issues in dispute to ______, and may ______
selected substantive or procedural issues.
Complaint - ANSWERS-If you file a ______ with the Investor ______ Center, FINRA can
investigate any potentially fraudulent or suspicious activities by brokerage firms or registered
representatives. You must initiate an arbitration or mediation to pursue monetary damages or
other restitution.
Attorney - ANSWERS-You should consider hiring an ______ to represent you during the
arbitration or mediation proceedings to provide direction and advice. Even if you do not choose
to hire an ______, brokerage firms are generally represented by an ______. If you cannot afford
an ______, some law schools provide legal representation through securities arbitration clinics.
You can also check: (1) American Bar Association;
(2) Public Investors Arbitration Bar Association; (3) Martindale - Hubbell
Database - ANSWERS-FINRA's Arbitration Awards ______ enables users to search online for
FINRA and NASD arbitration awards free of charge, seven days a week.
Exchanges - ANSWERS-FINRA provides dispute resolution services for several ______ that are
not able to staff or operate a dispute resolution program. These services include administration
of the ______'s member-member, member-investor and member-employer securities-industry
related disputes. The term "member" may include brokerage firms that are not members of
FINRA.
,Code of Mediation Procedure - ANSWERS-This Code contains the official FINRA rules governing
mediations. (7 pages)
Statement of Claim - ANSWERS-The arbitration process begins with a party filing a ______
______ _____ with FINRA. The party who files the ______ ______ ______ is called a claimant.
The party against whom the ______ ______ ______ is filed is called the respondent. The ______
______ _____ should provide the details of the dispute, including relevant dates, names of
entities and individuals involved, and the type of relief requested and the respondents from
whom the claimant is seeking relief or damages. The type of relief a claimant may request,
includes, but is not limited to, actual monetary damages, interest, and specific performance.
Answer - ANSWERS-An ______ is a written document that specifies the relevant facts and
available defenses to the Statement of Claim. A respondent files an answer to the claimant's
Statement of Claim.
Number - ANSWERS-The ______ of arbitrators appointed to a case depends on the amount and
type of relief requested in the Statement of Claim.
Initial Prehearing Conference (IPHC) - ANSWERS-Once the panel is appointed, FINRA schedules
the ______ ______ ______ (______). The ______ is the first time that the parties and
arbitrators meet to set the schedule for the case and usually held by telephone. During this
telephone conference, the arbitration panel will schedule evidentiary hearing dates, establish
discovery deadlines, set briefing and motion deadlines, determine whether mediation is
desirable, and address other preliminary matters.
Discovery Process - ANSWERS-The ______ ______ allows the parties to obtain facts and
information from other parties to the arbitration in order to support their own case and prepare
for the hearing. The Codes of Arbitration Procedure 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 ______ ______,
including making ______ requests, responding to such requests, objecting to ______ requests,
and arbitrator authority to issue sanctions against parties for ______ abuses.
, Closing - ANSWERS-After ______ the record, the arbitration panel considers all of the evidence,
deliberates together, and decides what relief the claimant is entitled to, if any.
Unanimous - ANSWERS-In a three-arbitrator panel, an award is based on the vote of a majority
of the arbitrators; a ______ decision is not required.
(Rules) Announcements - ANSWERS-______ provide recent updates, changes, and notifications
about Dispute Resolution rules, proposals, and procedures.
Filing - ANSWERS-The party filing a claim must pay a ______ fee at the time the party files a
Statement of Claim. The amount of this fee is based on the total amount of the claim including
any punitive and treble damages requested, but excludes interest and expenses.
Fee waiver - ANSWERS-Parties may submit a written request for a ______ ______ stating the
reason(s) that would make payment of the filing fee a financial hardship.
In support of the request, parties should include the following information with the written
request:
a copy of the most recently filed tax return;
two of the most recent pay stubs; and
documentation of garnishment or lien, or other documents that evidence hardship.
Refund - ANSWERS-FINRA will issue a partial ______ of the filing fee, less any fees or costs owed
by that party, if the party notifies FINRA that the case is settled or withdrawn more than 10
calendar days before a scheduled hearing, Any ______ will be paid directly to the named
parties, even if a non-party made payment on behalf of the named parties.
FINRA will not issue a ______ if a party notifies FINRA that a claim is settled or withdrawn
within 10 calendar days of a scheduled hearing.
Complete Solutions41
Mediation - ANSWERS-Arbitration and ______ are two distinct methods of resolving securities
disputes between two or more parties. Disputes, claims or controversies arising out of business
dealings with any FINRA brokerage firm can be resolved in arbitration or ______.
Arbitration - ANSWERS-______ is a formal dispute resolution process in which the parties—
customers, brokers, or brokerage firms making or responding to a claim—select a neutral, third
party called a(n) ______, to listen to the arguments set forth by parties, study the testimonial
and/or documentary evidence, and render a decision on the matter. By ______ your claim, you
forego the opportunity to have the same matter decided by a court of law because an ______
award is final and binding.
Mediation - ANSWERS-______ is an informal, voluntary and non-binding process. A(n) ______
facilitates negotiations between disputing parties. The ______'s role is to help the parties find a
mutually acceptable solution to the dispute.
First - ANSWERS-Arbitration and mediation are important methods of dispute resolution that
have been used successfully by the securities industry and others, but they generally should not
be your ______ steps.
Arbitration - ANSWERS-______ is a method of resolving a dispute between two or more parties
by neutral, qualified individuals, who serve as decision-makers after weighing the facts of each
case presented. The decision-makers are called ______. ______ of securities disputes against
brokerage firms, brokers, or both provides a prompt and inexpensive means of resolving issues.
There are certain laws governing the conduct of an ______ proceeding. The most important of
these is perhaps the fact that an ______ award is final and binding, subject to review by a court
only on a very limited basis. Parties should also recognize that ______ their claims precludes
them from pursuing the same claims through the courts.
,Request for Mediation - ANSWERS-You may file a ______ ______ ______ at any time, whether
or not you have already filed an arbitration claim. However, ______ is a voluntary process — no
party is required to ______ a dispute. When we receive your request, FINRA Dispute Resolution
staff will contact the other party or parties to the dispute to explain the ______ process, and
seek their agreement to ______.
Mediation - ANSWERS-Initiate a ______: This is the first step of the ______ process. When one
party expresses an interest in ______, FINRA will contact the other parties to determine their
interest, The parties may submit all or some of the issues in dispute to ______, and may ______
selected substantive or procedural issues.
Complaint - ANSWERS-If you file a ______ with the Investor ______ Center, FINRA can
investigate any potentially fraudulent or suspicious activities by brokerage firms or registered
representatives. You must initiate an arbitration or mediation to pursue monetary damages or
other restitution.
Attorney - ANSWERS-You should consider hiring an ______ to represent you during the
arbitration or mediation proceedings to provide direction and advice. Even if you do not choose
to hire an ______, brokerage firms are generally represented by an ______. If you cannot afford
an ______, some law schools provide legal representation through securities arbitration clinics.
You can also check: (1) American Bar Association;
(2) Public Investors Arbitration Bar Association; (3) Martindale - Hubbell
Database - ANSWERS-FINRA's Arbitration Awards ______ enables users to search online for
FINRA and NASD arbitration awards free of charge, seven days a week.
Exchanges - ANSWERS-FINRA provides dispute resolution services for several ______ that are
not able to staff or operate a dispute resolution program. These services include administration
of the ______'s member-member, member-investor and member-employer securities-industry
related disputes. The term "member" may include brokerage firms that are not members of
FINRA.
,Code of Mediation Procedure - ANSWERS-This Code contains the official FINRA rules governing
mediations. (7 pages)
Statement of Claim - ANSWERS-The arbitration process begins with a party filing a ______
______ _____ with FINRA. The party who files the ______ ______ ______ is called a claimant.
The party against whom the ______ ______ ______ is filed is called the respondent. The ______
______ _____ should provide the details of the dispute, including relevant dates, names of
entities and individuals involved, and the type of relief requested and the respondents from
whom the claimant is seeking relief or damages. The type of relief a claimant may request,
includes, but is not limited to, actual monetary damages, interest, and specific performance.
Answer - ANSWERS-An ______ is a written document that specifies the relevant facts and
available defenses to the Statement of Claim. A respondent files an answer to the claimant's
Statement of Claim.
Number - ANSWERS-The ______ of arbitrators appointed to a case depends on the amount and
type of relief requested in the Statement of Claim.
Initial Prehearing Conference (IPHC) - ANSWERS-Once the panel is appointed, FINRA schedules
the ______ ______ ______ (______). The ______ is the first time that the parties and
arbitrators meet to set the schedule for the case and usually held by telephone. During this
telephone conference, the arbitration panel will schedule evidentiary hearing dates, establish
discovery deadlines, set briefing and motion deadlines, determine whether mediation is
desirable, and address other preliminary matters.
Discovery Process - ANSWERS-The ______ ______ allows the parties to obtain facts and
information from other parties to the arbitration in order to support their own case and prepare
for the hearing. The Codes of Arbitration Procedure 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 ______ ______,
including making ______ requests, responding to such requests, objecting to ______ requests,
and arbitrator authority to issue sanctions against parties for ______ abuses.
, Closing - ANSWERS-After ______ the record, the arbitration panel considers all of the evidence,
deliberates together, and decides what relief the claimant is entitled to, if any.
Unanimous - ANSWERS-In a three-arbitrator panel, an award is based on the vote of a majority
of the arbitrators; a ______ decision is not required.
(Rules) Announcements - ANSWERS-______ provide recent updates, changes, and notifications
about Dispute Resolution rules, proposals, and procedures.
Filing - ANSWERS-The party filing a claim must pay a ______ fee at the time the party files a
Statement of Claim. The amount of this fee is based on the total amount of the claim including
any punitive and treble damages requested, but excludes interest and expenses.
Fee waiver - ANSWERS-Parties may submit a written request for a ______ ______ stating the
reason(s) that would make payment of the filing fee a financial hardship.
In support of the request, parties should include the following information with the written
request:
a copy of the most recently filed tax return;
two of the most recent pay stubs; and
documentation of garnishment or lien, or other documents that evidence hardship.
Refund - ANSWERS-FINRA will issue a partial ______ of the filing fee, less any fees or costs owed
by that party, if the party notifies FINRA that the case is settled or withdrawn more than 10
calendar days before a scheduled hearing, Any ______ will be paid directly to the named
parties, even if a non-party made payment on behalf of the named parties.
FINRA will not issue a ______ if a party notifies FINRA that a claim is settled or withdrawn
within 10 calendar days of a scheduled hearing.
