How does FINRA mediation differ from FINRA arbitration?

The two processes are fundamentally different. FINRA arbitration is an adjudicative process in which the parties present their claims, defenses and evidence to an arbitrator or arbitration panel that ultimately issues an award. FINRA mediation, by contrast, is voluntary and non-adjudicative. The mediator serves as a neutral and impartial facilitator and has no authority to determine issues, make decisions or otherwise resolve the dispute for the parties.

FINRA mediation requires the agreement of all parties, and a party may withdraw before execution of a written settlement agreement. When selecting a mediator, parties may consider the mediator's employment and professional background, mediation experience, training, credentials and familiarity with securities-related disputes.