Friday, March 18, 2016

FINRA May Create Fund for Unpaid Arbitration Awards

According to On Wall Street, FINRA's CEO Richard Ketchum expressed interest in having FINRA cover unpaid arbitration awards for some of the many investors unable to collect them from the brokers who harmed them.
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This should be interesting. Certainly unpaid awards are a problem. So are unpaid judgments. Part of being a good attorney is knowing who to sue, and making sure that there is a pot at the end of the case.

And this is true whether you are in court, or in arbitration.

But more to the point, if FINRA wants to fund a pool, lets do it from their multi-million dollar salaries. FINRA has plenty of money to finance a pool. The real question is what is FINRA going to do about arbitrators who award a million dollars in punitive damages against a firm that defaults? They are going to pay that award?

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