March 06, 2018

InvestmentNews: Sen. Warren introduces bill targeting unpaid Finra arbitration awards

Sen. Elizabeth Warren, D-Mass., introduced legislation Tuesday that would require Finra to create a fund to cover unpaid arbitration awards.

Under Ms. Warren's bill, the broker-dealer self-regulator would draw from the fines it assesses on member firms for violating Finra rules to establish a pool of money to cover arbitration shortfalls.


"Finra has the authority to make sure defrauded investors don't get stiffed — and this bill will make sure it uses it," Ms. Warren said in a statement. "Unpaid arbitration awards have cost ordinary investors hundreds of millions of dollars over the years. Finra is supposed to be looking out for them, not the brokers and dealers who cheat them."

Read the full article on the InvestmentNews website here

By:  Mark Schoeff Jr.
Source: InvestmentNews