FINRA Fed Up with Unpaid Arbitration Awards

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FINRA Fed Up with Unpaid Arbitration Awards

The Financial Industry Regulatory Authority (FINRA) is now considering a new requirement for brokerage firms: mandatory insurance coverage for the payment of an arbitration awards. This possible new requirement stems from customer frustration with firms not paying arbitration awards. Statistics from FINRA indicate that 11% of awards went unpaid in 2011; which was 6% higher than the two previous years. The regulatory authority is hoping that the requirement of liability insurance will reduce the number of unpaid arbitration awards.

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By |2019-12-24T11:03:34-05:00November 5th, 2013|Securities|0 Comments

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