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.
If you believe you have been victimized by securities fraud, financial malpractice, or theft by a FINRA registered broker, please call the securities attorneys of the Costello Law Group at (877) 418-0003 for a free consultation.
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