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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.


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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson


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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005


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

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
When both parts of indirect path with the mediatory role of sharing mistakes are significant, it can be concluded that sharing mistakes has a mediatory role between social network and idea generation, and its mediatory degree is 0.179; so hypothesis 8 is also approved.
The US could certainly promise the Saudis a more active role in dealing with the Palestinian issue and Iran in return for Saudi acceptance of a mediatory role in the Afghan situation.
envoy on the North Korean question, but he may have to personally assume a mediatory as his predecessors have done on major international disputes.
He also said that expanding the role of the Archbishop of Canterbury, as recommended by the report, could work if the incumbent is given "more of a conciliatory and mediatory role" but not the authority to, say, overrule decisions.
What made the situation worse is JOWOC's unreasonable stubborn attitude to reject even a mediatory proposal that the world's soccer governing body, FIFA, forwarded after an emergency meeting between its secretary general and those of the two nations' organizing committees in Cannes, France last week.
Marie Claude Tjibaou, who is the president of the ADKC, understands the mediatory role of the building: 'Today, everyone is coming to see the architecture.
Extracting compelling evidence from 628 case records that are drawn from three separate counties from between about 1760 and 1900, Huang exposes a system that took neither dispassionate legalist authoritarianism nor mediatory Confucian paternalism as its operative principle.
In the context of Merleau-Ponty's Lifeworld, texts and traditions become part of an open-ended mediatory process which accepts everything and depends on never-ending interaction and change.
During media talks with Prime Minister Imran Khan on Monday, President Trump revealed that the Indian PM on the sidelines of the G-20 Summit in Tokyo last month had asked for his mediatory role in helping resolve the issue of Kashmir between India and Pakistan.
Additional Secretary Aftab Khokhar said Pakistan will continue playing its mediatory role in establishment of peace in the region, including Afghan peace process, as part of the vision of Prime Minister Imran Khan.
MAKKAH -- Appreciating the mediatory role of Saudi Arabia during the recent tension between Pakistan and India, Foreign Minister Shah Mahmood Qureshi on Wednesday made it clear that participation of India in the Organisation of Islamic Cooperation (OIC) was not acceptable in any capacity.
Foreign Minsiter Qureshi lauded Saudi Arabia's mediatory role during the tense situation between Paksitan and India, adding that Pakistan would not accept India's membership of OIC.