Finra board to consider crackdown on high-risk brokers, unpaid arbitration awards

The group also will mull amendments to arbitration procedures.
MAY 04, 2017

The board of the Financial Industry Regulatory Authority Inc. next week will address two nettlesome issues for the broker-dealer self-regulator: brokers with disciplinary histories who keep resurfacing in the industry and brokerages that fail to pay arbitration awards. The group "will consider proposed rule amendments and other steps designed to heighten the oversight of high-risk brokers and the firms that employ them," states its agenda for the May 10 meeting in New York City. Dealing with recidivist brokers has been an ongoing challenge for Finra. The board also will mull amendments to Finra's arbitration procedures and Form U4 regarding payment of arbitration awards by firms and brokers. A study last year by the Public Investors Arbitration Bar Association showed that $62 million in arbitration awards were not paid to investors in 2013, or about 25% of the total owed to investors for damages that year. Unpaid arbitration claims also have caught the attention of Capitol Hill. Last month, Senate Democrats called on Finra to create a fund to compensate investors for unpaid arbitration claims.

Latest News

Ric Edelman, ex-Orion CEO Eric Clarke join board for TaxStatus
Ric Edelman, ex-Orion CEO Eric Clarke join board for TaxStatus

Two longtime RIA industry figures have joined the board of directors at TaxStatus, a fintech company that garners thousands of IRS data points on clients to share with advisors for improved financial planning oversight and time savings.

Andy Sieg faces internal HR investigation into conduct at Citigroup: Report
Andy Sieg faces internal HR investigation into conduct at Citigroup: Report

Sieg, 58, was head of Merrill Wealth Management, left in 2023 and returned that September to Citigroup, where he worked before being hired by Merrill Lynch in 2009.

Advisor moves: Wells Fargo FiNet, LPL Financial, Raymond James, Janney, Ameriprise
Advisor moves: Wells Fargo FiNet, LPL Financial, Raymond James, Janney, Ameriprise

Firms announce new recruits including wirehouse breakaways.

Ashton Thomas-linked Amplify debuts QuantumRisk to help RIAs weather market shocks
Ashton Thomas-linked Amplify debuts QuantumRisk to help RIAs weather market shocks

"QuantumRisk, by design, recognizes that these so-called "impossible" events actually happen, and it accounts for them in a way that advisors can see and plan for," Dr. Ron Piccinini told InvestmentNews.

Turning conversations into clients: Attract prospects and gain new clients with these five strategies
Turning conversations into clients: Attract prospects and gain new clients with these five strategies

Advisors who invest time and energy on vital projects for their practice could still be missing growth opportunities – unless they get serious about client-facing activities.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.