It is being reported that FINRA’s board of governors is privately debating the creation of a relief fund for unpaid arbitration awards.
Such a fund, which has been pushed for by PIABA (the Public Investors Arbitration Bar Association, of which this firm is a member) for years, would aim to solve the ongoing problem of investors who win awards from FINRA member firms and brokers, only to find it impossible to collect on those claims. In 2013 alone over $62 million in awards went unpaid.
One proposal to potentially make this happen involves FINRA members paying dues annually into a designated pool, amounting to about $100 per broker, to help compensate jilted award winners.
If created this would allow far more claims to be filed since many securities lawyers refuse to represent fraud victims when there is no chance of collecting from bankrupt firms or brokers. Here is hoping that this proposal gains traction and is actually implemented as opposed to just discussed because this would be a huge win for investors!
The foregoing information, which is all publicly available on FINRA’s website, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. For more information on the firm and it’s representation of investors, visit http://www.whitesecuritieslaw.com.
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