Regulatory Notice 18-06

FINRA Requests Comment on Proposed Amendments to Its Membership Application Program to Incentivize Payment of Arbitration Awards

Comment Period Expires: April 9, 2018

Summary

FINRA is requesting comment on proposed amendments to its Membership Application Program (MAP) rules to create further incentives for the timely payment of arbitration awards by preventing an individual from switching firms, or a firm from using asset transfers or similar transactions, to avoid payment of arbitration awards while staying in business. The amendments would address situations where: (1) a FINRA member firm hires individuals with pending arbitration claims, where there are concerns about the payment of those claims should they go to award or result in a settlement, and the supervision of those individuals; and (2) a member firm with substantial arbitration claims seeks to avoid payment of the claims should they go to award or result in a settlement by shifting its assets, which are typically customer accounts, or its managers and owners, to another firm and closing down.

The text of the proposed amendments can be found at www.finra.org/notices/18-06.

Questions concerning this Notice should be directed to Victoria Crane, Associate General Counsel, Office of General Counsel, at (202) 728-8104.

Related Documents: 

DateTitleFormat - Size
2/8/2018Regulatory Notice 18-06 Attachment APDF - 57.73 KB
The views, expressions, findings and opinions expressed in the comments on this Web page are solely those of the author(s) and FINRA accepts no responsibility for the content of the comments: 
DateCommenterFormat - Size
3/31/2018IBN Financial Services Inc.PDF - 76.72 KB
4/4/2018Colorado Financial Service Corp.PDF - 198.79 KB
4/9/2018SIFMAPDF - 144.35 KB
4/9/2018Georgia State University College of LawPDF - 63.89 KB
4/9/2018PIABAPDF - 241.36 KB
4/9/2018Cornell University Law SchoolPDF - 319.26 KB
4/9/2018UNLV William S. Boyd School of LawPDF - 572.95 KB
4/9/2018NASAAPDF - 224.66 KB
4/9/2018Financial Services InstitutePDF - 213.57 KB