Legal Definitions - Securities dispute resolution: Prehearing

When there is a dispute between parties in the securities industry, they may choose to resolve it through arbitration. Before the actual hearing takes place, there is a prehearing conference where the panel appointed to oversee the arbitration will set deadlines and address preliminary matters.

The first prehearing conference is called the Initial Prehearing Conference. During this meeting, the panel will:

• Set deadlines for discovery, briefing, and motions
• Schedule subsequent hearing sessions
• Address other preliminary matters that will simplify or expedite the arbitration

This meeting is usually held over the telephone, unless the parties object otherwise.

The parties may agree not to hold the Initial Prehearing Conference. However, they must provide the following information, in writing, to the Director of Arbitration of the Financial Industry Regulatory Authority (FINRA):

• A statement that the parties accept the panel
• Whether any other pre-hearing conferences will be held, and if so, for each pre-hearing conference, a minimum of four mutually agreeable dates and times, and whether the chairperson or the full panel will preside
• A minimum of four sets of mutually agreeable hearing dates
• A discovery schedule
• A list of all anticipated motions, with filing and response due dates
• A determination regarding whether briefs will be submitted, and, if so, the due date for the briefs and any reply briefs

For example, if two parties are in a securities dispute and they agree not to hold the Initial Prehearing Conference, they must still provide the necessary information to the Director of Arbitration of FINRA. This includes setting hearing dates, a discovery schedule, and deadlines for motions and briefs.

Overall, the prehearing conference is an important step in the securities dispute resolution process as it sets the groundwork for the actual hearing and ensures that both parties are aware of the deadlines and procedures involved.