Code of Arbitration Procedure Meaning & Definition

Trusted Experts

For more than 25 years we’ve helped students pass over 250,000 exams and we’ve done so with  industry leading pass rates!

Guaranteed to pass

Pass  our Greenlight guaranteed practice exam & we guarantee you’ll pass your exam – or your money back!*

Live chat & Phone Support

We’re with you every step of the way, from the time you purchase until the time you pass our trusted experts are here to answer all of your questions!

Definition of Code of Arbitration Procedure

The Code of Arbitration Procedure is the FINRA bylaw that provides for a forum for dispute resolution relating to industry matters. All industry participants must arbitrate a public customer must agree to arbitration in writing.

Applying "Code of Arbitration Procedure" to Securities Exams:

Arbitration is used to settle monetary disputes. Arbitration will result in a decision that is final, binding and may not be appealed for any reason. Once a person has entered the financial industry, at the time they sign and submit their U4 form, they have agreed to settle any and all disputes in arbitration. A customer must agree to settle any dispute through arbitration in writing. Most firms have customers sign a customer agreement at the time they open an account. The customer agreement usually contains a pre dispute arbitration clause. The only industry matter that cannot be forced into arbitration is a matter regarding harassment or discrimination, in these matters the parties must specifically agree to go to arbitration.