Mediation Process

Mediation is an informal and flexible dispute resolution process. The mediator’s role is to guide the parties toward their own resolution. Through joint sessions and separate caucuses with parties, the mediator helps both sides define the issues clearly, understand each other’s position and move closer to resolution.

Most often, mediations start with a joint session used to set the ground rules and an agenda.  The joint session also helps define the issues and determines the parties’ positions.

Generally, during the process, parties move to separate caucuses. The mediator will carry messages—offers, counter offers, questions, demands, and proposals—between both sides to help the parties move closer to resolution.

FINRA mediators have subject-matter expertise, so that parties may select a mediator who is knowledgeable in the areas of controversy that are the subject of the dispute. Thus, mediators can often give each side an expert, yet unbiased, view of the strengths and weaknesses of the case overall. They may also discuss with the parties what might happen if the dispute does not settle.

The mediator has no authority to decide the settlement or even compel the parties to settle. Mediation is non-binding, until parties agree on a resolution. If the matter does not settle, the claimant has preserved the right to pursue arbitration.

A typical mediation progresses through the following stages:

  • Initiate a Mediation
    The parties may file a Request for Mediation to begin the process, or, if the matter is already in arbitration with FINRA, they may contact their arbitration administrator for a referral to mediation.
  • Mediator Selection
    Once the parties begin the mediation process, they learn how to select a mediator.
  • Mediation Sessions
    The parties will learn what takes place at a mediation session.
  • Settlement
    A settlement occurs if the parties resolve their dispute.
  • Impasse
    Impasse occurs if the parties do not settle their dispute.

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