{"id":1325,"date":"2013-10-04T21:27:19","date_gmt":"2013-10-04T21:27:19","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2013\/10\/finra_considers_making_brokerd"},"modified":"2022-03-10T16:37:01","modified_gmt":"2022-03-10T22:37:01","slug":"finra-considers-making-brokerd","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-considers-making-brokerd\/","title":{"rendered":"FINRA Considers Making Broker-Dealers Carry Insurance Covering Arbitration Payments"},"content":{"rendered":"

\t\t\t\tThe Financial Industry Regulatory Authority intends to weigh whether to mandate that brokerage firms have insurance covering payments for possible arbitration awards<\/a> issued to investors. The SRO is aware that there has been frustration among claimants who have not received their awards.<\/p>\n

It can be a problem when a brokerage firm closes its doors without paying legal claims and awards it owes customers. Making broker-dealers carry insurance could lower the amount of awards that go unpaid. Unfortunately, some firms have such a small financial cushion that they can be forced to close shop over just one arbitration award.<\/p>\n

According to SNL Financial, which conducted an analysis for The Wall Street Journal<\/em>, over 940 firms reported having a net capital of under $50,000 in financial reports from as recent as July. FINRA says that 11% of all arbitration awards issued in 2011 have yet to be paid-that’s $51 million. This is 4% increase from what was unpaid from 2009 and 2010. <\/p>\n

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

The Financial Industry Regulatory Authority intends to weigh whether to mandate that brokerage firms have insurance covering payments for possible arbitration awards issued to investors. The SRO is aware that there has been frustration among claimants who have not received their awards. It can be a problem when a brokerage firm closes its doors without […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3798,3774,3739],"tags":[],"class_list":["post-1325","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-broker-dealers","category-finra"],"yoast_head":"\nFINRA Considers Making Broker-Dealers Carry Insurance Covering Arbitration Payments — Investor Lawyers Blog — October 4, 2013<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority intends to weigh whether to mandate that brokerage firms have insurance covering payments for possible — October 4, 2013\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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