News & Insights

October Is Finra Mediation Settlement Month

Every October, FINRA’s Office of Dispute Resolution significantly reduces mediation prices in order to encourage mediation and settlement of customer and industry disputes.  The goal of Settlement Month is to encourage parties to experience the benefits of mediation for the first time and to reinforce its value and effectiveness for those who have been through the mediation process already.

FINRA mediation has many advantages, including time and cost savings and influence over the quality.  Settlement is generally swift as sessions can be held telephonically and the fees and expenses are low compared to private mediators.  Parties can also choose the mediator from a select roster of experienced FINRA mediators.  Oftentimes, these mediators have served as arbitrators as well and are experienced with the arbitration process and FINRA rules and procedures. 

The mediation program results in settlements more than 80% of the time with FINRA mediators settling four out of every five cases.  During October, all fees are reduced to encourage use of the program.  Cases with an amount in controversy up to $25,000 pay a total of $100 per party for a four-hour mediation; cases with an amount in controversy from $25,001 to $100,000 pay a total of $200 per party for a four-hour mediation; and cases with an amount in controversy over $100,000 pay a total of $500 per party for an eight-hour mediation.  FINRA filing fees also apply, but are reduced 50% during Settlement Month.

We remind our clients that in order to qualify for the reduced fees this year, parties must agree to mediate by October 31st and hold their mediation by December 31st.