FINRA Dispute Resolution Statistics

Friday, December 18, 2015

I'm sharing a few observations on FINRA's dispute resolution statistics (through October, 2015), which are worth a look here

  • 80% of cases mediated through FINRA in recent years are settled;
  • 15% fewer customer cases were filed in 2015 as compared to 2014;
  • the average time to hearing is 17.6 months, but about half that time in simplified decisions (for smaller cases);
  • breach of fiduciary duty is the #1 type of controversy in each year form 2011-2015;
  • municipal bond funds have been the #1 security in customer disputes (thanks in large part, no doubt to Puerto Rican bonds) in 2014-2015, but prior to that time municipal bond funds were nowhere close to the top of the list;
  • a steady 18-19% of cases have been decided by hearing from 2011-2015;
  • recent statistics (2015) show that customers win about half the time, but FINRA does not report more information that might shed light on why some customers win and others do not (such, as, whether the customer appeared with or without an attorney -- presumably the win rate is much lower for customers representing themselves).

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