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SIFMA OK with Finra 19-17 Broker Dealer Conduct Proposal
Traders Magazine Online News, July 10, 2019
Market overseer Finra is looking to better protect Mom-and-Pop investors from troublesome brokers.
To that end, Finra has put out for comment Notice 19-17 and SIFMA has now officially sent comments to regulatory body. The 19-17 proposal would impose tailored obligations, including financial set-asides, on designated member firms that cross specified, numeric disclosure-event thresholds. The stated purpose of the Proposal is to give FINRA another tool to incentivize member firms to comply with regulatory requirements and to pay arbitration awards. We respectfully submit the following comments and recommendations for your consideration.
In summary, SIFMA supports targeted efforts to ensure firms pay their arbitration awards in full, according to a statement on its website.
“SIFMA applauds FINRA’s continuing efforts to help ensure that arbitration claims, awards, and settlements are paid in full. At the same time, we have been careful to explain that the issue of unpaid awards is not an indictment of the current securities arbitration system, or of the various processes currently available to help collect an arbitration award. Nor does it justify calls to create some form of post-award collection pool, insurance, or guaranty.”
The full comment letter can be found here
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