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An extrajudicial means of resolving a dispute between a broker and a client in which the parties agree to make their cases before an impartial person or panel. Very often, mediation is conducted through FINRA. Mediation is less expensive than arbitration and is certainly cheaper than a lawsuit.


A process for settling a dispute between an investor and a broker. The two sides employ a third party who attempts to find common ground that will resolve the dispute. Mediation is a less lengthy and less expensive alternative to arbitration. Each side must agree to mediation and either side may walk away from the process at any time. Compare arbitration. See also NASD Dispute Resolution, Inc.


Mediation is an informal, voluntary method of resolving disputes, in which the parties in conflict meet with a trained, independent third party to come up with a solution that's satisfactory to everyone involved.

For example, if you have a problem with your broker that you can't resolve directly with the firm, you can file a request for mediation with NASD, which oversees brokerage firms and has over 900 trained mediators to help resolve disputes.

Mediation is considered less expensive, less formal, and less confrontational than arbitration or lawsuits. But both parties must agree to use the process.

While you may retain a legal adviser during mediation, any resolution will be crafted with your direct involvement, which is usually not the case with arbitration.

Also, unlike arbitration, mediation is nonbinding, which means that if you're not happy with the outcome, you can stop the process, and either drop the issue or move to more formal proceedings.


a method of resolving INDUSTRIAL DISPUTES in which a neutral third party acts as a go-between to the parties in dispute. Typically, the mediator introduces proposals of his or her own as an aid to continued NEGOTIATIONS. It is a useful form of intervention where disputes have become especially acrimonious and the disputants are entrenched in their bargaining positions. Conceptually it is midway between CONCILIATION and ARBITRATION. See ADVISORY, CONCILIATION AND ARBITRATION SERVICES (ACAS), COLLECTIVE BARGAINING.


a procedure for settling disputes, most notably INDUSTRIAL DISPUTES, in which a neutral third party meets with the disputants and endeavours to help them resolve their differences and reach agreement through continued negotiation. In some countries, ‘conciliation’ is distinguished from ‘mediation’ according to the degree of intervention exercised by the conciliator or mediator in the process of encouraging the parties to settle their differences, with a conciliator refraining from advancing, and the mediator expected to advance, proposals of his own for possible settlements. Both forms of intervention leave the bargaining process intact, with any resultant settlement being agreed upon by all disputing parties. In the UK, the ADVISORY, CONCILIATORY AND ARBITRATION SERVICE acts in this capacity See alsoARBITRATION, COLLECTIVE BARGAINING, INDUSTRIAL RELATIONS.


An alternative dispute resolution (ADR) process in which a trained person assists disputants in coming to a solution that will be the best one under the circumstances for all involved.It is not binding,but many courts are now imposing mandatory diversion to mediation and a requirement that the parties negotiate in good faith to reach a settlement. Failure to settle may subtly impact a judge's decision regarding the party most at fault in a dispute.The American Arbitration Association,which also offers mediation services,maintains a Web site at

References in periodicals archive ?
Another important benefit to mediation is its high success rate.
Based on information provided by the official mediation institutes of the two other Scandinavian countries, Sweden and Norway, the situation is the same throughout the rest of Scandinavia.
According to Chereji and Gavrila (2014), mediation is defined as 'a negotiation process facilitated by a trusted neutral person having no power of decision'.
There is no privilege for a communication that is available to the public, either pursuant to an open records law or made during a mediation required to be open to the public.
The EGM Project examines the nexus between elder law, mediation and adult guardianship.
Mediation is also unique because it allows both sides to tell each other--not a judge or an arbitrator--their respective sides of the story.
In Romania, the first legislative step for mediation was made by the Decision no.
Article 1, para 1 of the CAS Mediation Rules defines mediation in the following terms:
If no time limit for termination of conciliatory mediation has been set in the conciliatory mediation agreement, the party to the dispute shall refer to a court or arbitration one month after proposing to the other party in the dispute, in writing, to resolve the dispute by way of conciliatory mediation.
The first two issues include articles on: the case for mediated case management; formal mediation in professional sports; disaster mediation and conflict coordination; good faith in mediation; protecting mediation communications in federal courts; using mediation to resolve environmental and natural resources disputes; invisible barriers to mediation; the role of mediation in trademark disputes; and, the mediator's role in the family business.
When successful, mediation can help avoid a due process hearing or other more adversarial procedures.