Sen. Warren introduces Bill targeting unpaid Finra arbitration awards
Source: Investment News
Sen. Elizabeth Warren, D-Mass., introduced legislation Tuesday that would require Finra to create a fund to cover unpaid arbitration awards.
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."
Public Investors Arbitration Bar Association study in 2016 showed that about $62 million in arbitration awards went unpaid in 2013. On Wednesday, PIABA is set to release another report that shows that between 2012-16, about 27% of arbitration awards, or about $200 million, went unpaid.
Ms. Warren's bill "is a wonderful development for investors," said PIABA president Andrew Stoltmann. "Finra has been unwilling to act on this issue for decades, and now we need a congressional fix."
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