Mediation is an informal attempt by two parties to try to resolve a dispute, prior to entering into the formal arbitration process. During the mediation process the two parties meet to discuss the contested issue, and the dialog is monitored by a mediator. The mediator is a neutral person with industry knowledge suggested by FINRA, who tries to help the parties reach an agreement. If the mediator is not acceptable, the parties may select another mediator from a list of approved mediators or their own independent mediator. Prior to entering into the mediation process, both parties must agree to try to resolve the issue in mediation and must split the mediator’s fee. The mediation process begins with an initial joint meeting where both parties lay out their claims for the mediator and the other party. During the second phase of the process, each side meets with the mediator individually in meetings known as caucuses. The mediator is a neutral party and will not disclose information provided during the caucus sessions to the opposing side. The mediation process will continue until an agreement is reached, the mediator declares an impasse with no possible resolution, or one of the parties or the mediator withdraws from the process in writing. The mediation process may provide a resolution for all or some of the contested issues. Issues that are not resolved in mediation may be resolved through formal arbitration


Related Articles
  1. Financial Advisor

    5 Tips for Cutting Divorce Costs

    A divorce can be difficult and expensive, but there are several ways for you to minimize some of costs associated with the process.
  2. Personal Finance

    Get Through Divorce With Your Finances Intact

    Find out how to split your finances without coming up short.
  3. Financial Advisor

    When A Dispute With Your Broker Calls For Arbitration

    Do you have a claim you'd like to file? We'll take you through this process step by step.
  4. Tech

    You Can Now Use Bitcoin to Buy Stuff on Amazon, via App

    This changes everything for Bitcoin and for (literally) billions of Amazon users.
  5. Retirement

    Tips to Help Siblings Avoid a Costly Estate Battle

    Sibling spats may be financial or emotional. Either way, here are steps parents can take to forestall conflicts and strategies for children if they don’t.
  6. Investing

    Party City Holdings: How It's Fared Since Its 2015 IPO (PRTY)

    Learn about Party City Holding's performance as a public company. Investors would have lost much more than the Russell 2000 Index by investing after the IPO.
  7. Financial Advisor

    Why Financial Advisor Background Checks Are Vital

    An alliance of public interest groups is pressuring FINRA to broaden its BrokerCheck tool.
  8. Tech

    IBM Watson Partners With FDA to Secure Health Data

    In keeping with its recent R&D efforts to unleash the power of blockchain data security solutions across multiple industries, IBM (NYSE: IBM) announced  its Watson Health unit is entering into ...
  9. Tech

    Bitcoin Market Cap Exceeds $13 Billion, Price Passes $800

    Thank India's demonetization, Chinese capital flight, and Trump.
  10. Personal Finance

    5 Financial Steps You Need to Take Before Divorce

    These are five financial steps that need to be taken before a divorce.
Frequently Asked Questions
  1. What is the difference between closed-end credit and a line of credit?

    Understand the difference between closed-end credit, open-end credit, and lines of credit. Then find out how each are used ...
  2. Why is social responsibility important to a business?

    Socially responsible companies improve their brand, attract and retain top talent, and improve relationships with their customers ...
  3. How do interest rate changes affect the profitability of the banking sector?

    Learn how interest rates affect the banking sector. When interest rates rise, the profitability of the banking sector increases.
  4. How is the Exponential Moving Average (EMA) formula calculated?

    Learn the formula for calculating both simple moving averages and exponential moving averages, indicators that are frequently ...
Trading Center