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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 ?
the number of disputes settled by mediation in Scandinavia is still insignificant and disappointing.
As a process, mediation holds some important characteristics:
Section 7 prevents the mediator from making a report to a court, administrative agency, or other authority that may rule on the dispute, except that a mediator may disclose that the mediation has occurred, has terminated, whether a settlement was reached, and who attended.
It examines the development of elder law, elder mediation and adult guardianship mediation practices in BC, Canada, and in the US with the goal of providing recommendations for best practice in elder and guardianship mediation and for a court-connected mandatory mediation program in BC.
Parties often leave a mediation without being totally satisfied because one side paid more than it had hoped and the other side received less than it expected.
The European Commission elaborated on 22 October 2004, a project "Directive of the European Parliament and Council on certain aspects of mediation in civil and commercial matters", endorsed by the European Economic and Social Committee on 9 June 2005, directive that was applied in the member states of the European Union starting January 1st 2007.
For example, it is not appropriate in doping cases - in fact, the CAS Mediation Rules expressly exclude it in such cases - and also where injunctive relief is sought.
The goal in mediation, with the assistance of the mediator, is for the school staff and parents to integrate these options into a workable solution that is written into a legally binding agreement.
Although the theory of mediation offers great promise to uphold the interests of both parties, in reality, this theory is not always realized.
Mediation as a distinct form of dispute resolution is much less familiar.
The application of sociological and historical methods in the study of religion has confirmed the notion that finitizing and generation-bridging mediations are intrinsic and not just accidental to everyday religion.