{"id":2669,"date":"2016-11-28T00:00:00","date_gmt":"2016-11-28T05:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/finra-considers-establishing-fund-unpaid-finra-arbitration-awards\/"},"modified":"2016-11-28T00:00:00","modified_gmt":"2016-11-28T05:00:00","slug":"finra-considers-establishing-fund-unpaid-finra-arbitration-awards","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/finra-considers-establishing-fund-unpaid-finra-arbitration-awards\/","title":{"rendered":"FINRA Considers Establishing Fund for Unpaid FINRA Arbitration Awards"},"content":{"rendered":"<\/p>\n

According to published reports that have been confirmed by a member of the Board of Governors of the Financial Industry Regulatory Authority<\/a> (FINRA), FINRA is undertaking closed-doors discussions focused on establishing a relief fund that would be used to pay otherwise unpaid FINRA arbitration awards.\u00a0 Such a fund would endeavor to partially solve the problem of investors who obtain arbitration awards against FINRA member firms and brokers, only to find it impossible to collect on those victories.\u00a0 Statistics show that in the most recent year for which data is available, a total of $62 million in awards — approximately one-third of all awards rendered by FINRA arbitration panels — went unpaid.\u00a0 Typically, arbitration awards go unpaid after brokerages and financial advisors declare bankruptcy or are otherwise insolvent, thus rendering hollow the awards entered against them in favor of aggrieved claimants.<\/p>\n

Under one plan that has been proposed, FINRA members would pay dues annually into a designated pool (approximately $100 per broker) to help compensate claimants who hold victorious, but uncollectible, arbitration awards.\u00a0 Such a pool would be created and maintained based on the average sum of unpaid claims over the previous five years.\u00a0 All of the money in the fund would be paid out annually.<\/p>\n

If FINRA were to establish such a recovery fund, many claimants for whom compensation is currently unattainable would find a viable source of reparation from bankrupt firms and brokers.\u00a0 In addition, the existence of such a fund is expected to bolster investors\u2019 confidence in the arbitration process, as it would prevent the substandard acts of certain FINRA members from going unchecked and would prevent the arbitration process from being a financially fruitless effort for those investors harmed by judgment-proof firms and brokers.<\/p>\n

Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

According to published reports that have been confirmed by a member of the Board of Governors of the Financial Industry Regulatory Authority (FINRA), FINRA is undertaking closed-doors discussions focused on establishing a relief fund that would be used to pay otherwise unpaid FINRA arbitration awards.\u00a0 Such a fund would endeavor to partially solve the problem […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[588],"tags":[],"class_list":["post-2669","post","type-post","status-publish","format-standard","hentry","category-finra-arbitration"],"yoast_head":"\nFINRA Considers Establishing Fund for Unpaid FINRA Arbitration Awards — Securities Arbitration Lawyers Blog — November 28, 2016<\/title>\n<meta name=\"description\" content=\"According to published reports that have been confirmed by a member of the Board of Governors of the Financial Industry Regulatory Authority (FINRA), — November 28, 2016\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silverlaw.com\/blog\/finra-considers-establishing-fund-unpaid-finra-arbitration-awards\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA Considers Establishing Fund for Unpaid FINRA Arbitration Awards — Securities Arbitration Lawyers Blog — November 28, 2016\" \/>\n<meta name=\"twitter:description\" content=\"According to published reports that have been confirmed by a member of the Board of Governors of the Financial Industry Regulatory Authority (FINRA), — November 28, 2016\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Silver Law Group\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta 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