Arbitrations are up 37% from a year ago, with breach of fiduciary duty being the most cited allegation by customers, according to a new Finra report.

Overall, customer claims are up 20% through May, while industry disputes have risen 64% over 2022 filings, according to the report.

The top 10 customer claims in arbitration are breach of fiduciary duty, negligence, breach of contract, failure to supervise, misrepresentation, suitability, omission of facts, fraud, violation of blue sky laws and breach of Regulation Best Interest. Arbitration claims often allege violations of multiple regulations and laws, Finra said.

There were 621 claims citing breach of fiduciary duty through May, compared to 485 such claims last year at this time, Finra reported.

Reg BI violation claims have jumped to 181 claims through May, up from 37 last year.

Breach of contract violations topped claims among intra-industry arbitrations, which include advisor- and firm-initiated claims. That is followed by promissory note claims, libel or slander on termination forms (U-5), defamation, libel, slander or defamation, wrongful termination, commission disputes, discrimination and harassment, raiding disputes and indemnification.

About 48% of claims were settled directly by parties, down one percentage point from a year ago. Claimants used mediation to adjudicate their claims 19% of the time and withdrew 8% of claims—similar to 2022, Finra reported.

Of cases that proceeded to arbitration, some 36% of claimants were awarded damages in regular hearings through May, down from 39% in 2022.  Claimants who asked for one or more Zoom evidentiary hearings won their claims 46% of the time, up from 44% in 2022.

The number of customers who won awards after in-person evidentiary hearings dropped to 42% through May, down from 46% in 2022.

Claimants who used “paper-only” arbitration received awards only 9% of the time through May, down from a 22% award rate in 2023, Finra reported.

The percentage of claimants who were assigned all-public panels fared slightly better than those assigned two public arbitrators on their three-arbitrator panels, according to the report. Some 38% of claimants with an all-public panel won an award through May, while 37% of claimants with two public arbitrators on their panel won an award.