The Statement of Claim

A FINRA arbitration begins when your attorney files a Statement of Claim. This document tells your story: what you were sold, what you were told, how the investment was unsuitable or misrepresented, and the losses you suffered.

It identifies the brokerage firm and individuals responsible, sets out the legal theories (such as unsuitability, misrepresentation, or failure to supervise), and states the damages you are seeking.

A well-prepared Statement of Claim sets the tone and scope of the entire arbitration. The facts and theories laid out at the start guide discovery, shape the hearing, and influence settlement discussions.

That is why the early factual review — and preserving your account statements, sales materials, and communications — is so important before anything is filed.

FINRA's six-year eligibility rule and other time limits mean that waiting can narrow your options or, in some cases, bar a claim entirely. The sooner the facts are reviewed, the more options you are likely to have.