Founder and President Amy Lynch commented on a recent FINRA regulatory notice detailing a proposed amendment to its arbitration rules. The amendment is intended to help customers of broker-dealers with unpaid arbitration awards. Ms. Lynch states that while it provides more options for the customer, it doesn’t necessarily help solve the unpaid arbitration problem. She says that customers could face additional challenges in the court system and if a rep or its firm is out of business, chances are slim that the customer would succeed in collecting payment. See InvestmentNews, “FINRA rule would let investors take arb claims to court if broker goes bankrupt during proceeding“
