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Group slams FINRA over arbitration claims

Joe Mont | February 29, 2016

Nearly one out of three investor awards in arbitration cases overseen by the Financial Industry Regulatory Authority go unpaid, alleges a new report by the Public Investors Arbitration Bar Association last week.

The group—a not-for-profit association of lawyers representing claimants in securities and commodities arbitration proceedings and litigation—claims that “nearly $1 of every $4 awarded to investors in arbitration hearings goes unpaid.”

“There’s a reason why the self-regulatory organization FINRA does not publish data about investors hit with unpaid arbitration awards,” a statement by the group says. “Allowing one in three awards to go unpaid is unconscionable. FINRA’s cures:  barring from the industry those who fail to pay awards, and notifying claimants that they can pursue actions in court against former FINRA members, have...

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