Financial Planning: Warren, PIABA call for FINRA fund to pay arbitration awards

Investor advocates and one of their leading voices in Congress are upping pressure on FINRA to ensure that bilked investors are paid the compensation they were awarded through arbitration.

Sen. Elizabeth Warren (D-Massachusetts) on Tuesday introduced the Compensation for Cheated Investors Act, which would direct FINRA to create a pool of money earmarked to pay compensation to investors who might otherwise go unpaid. The funds would be drawn from enforcement penalties collected from brokers. .

"FINRA has the authority to make sure defrauded investors don't get stiffed — and this bill will make sure it uses it," Warren says in a statement. "FINRA is supposed to be looking out for them, not the brokers and dealers who cheat them."

Read the full article on the Financial Planning webiste here. 

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