General Securities Sales Supervisor (Series10) Practice Exam

What is the maximum amount for disputes that can be settled through simplified arbitration under FINRA rules?

1. A $25,000

2. B $50,000

3. C $75,000

4. D $100,000

The correct answer is: B $50,000

Under FINRA rules, disputes that can be settled through simplified arbitration are capped at a maximum amount of $50,000. This process is designed to provide a streamlined and expedited means of resolving disputes, particularly for smaller claims, to encourage more efficient dispute resolution. The $50,000 limit specifically pertains to claims where the amount in controversy, including any interest, attorney's fees, and other recoverable costs, does not exceed this threshold. By establishing this cap, FINRA aims to make arbitration more accessible and less costly for parties involved in smaller disputes, enabling them to resolve their issues without the extensive formalities that larger arbitration cases might entail. This simplified arbitration process serves to reduce both time and expenses related to arbitration, allowing for quicker resolutions that are often beneficial to both parties involved.