As your industry advocate, the NIBA provides many services which help your business stay in compliance with NFA regulations. "Ask the NFA," is the way you can ask questions about those regulations and compliance requirements without having to call NFA directly.
Just email us at nfacomments@theniba.com and we will get the answers for you. Please keep in mind the purpose of this contact is to keep the lines of communication between NFA and NIBA members open, not to fix any specific individual concerns.
This month's questions were selected from those submitted by NIBA members. The answers were supplied by NFA staff.
Question: In the event of a dispute between a member firm and another member is there a medium that NFA provides for resolution?
Answer: NFA arbitration is a process where parties present their arguments and supporting evidence before an impartial third party (or panel) who decides how the matter should be resolved. NFA arbitration is generally faster and less expensive than formal litigation. A party does not need a lawyer to pursue a claim at NFA.
NFA offers two separate arbitration programs. The first, customer arbitration, is designed for disputes involving customers and NFA Members, their employees and Associates. This includes disputes NFA Members initiate against current or former customers. The second, member arbitration, is designed for disputes between and among NFA Members and Associates. Before a Member or Associate files a claim, they should carefully read NFA's Member Arbitration Rules and Member arbitration publications to ensure they understand the arbitration process.