Bipartisan backing for legislation targeting unpaid Finra arbitration awards has supporters hoping the measure will advance this year.
Under the bill, written by Sen. Elizabeth Warren, D-Mass., the Financial Industry Regulatory Authority Inc. would have to establish a fund financed by Finra fine money to cover awards that firms and brokers fail to pay to customers who win arbitration claims.
Ms. Warren has been critical of the ongoing problem of unpaid Finra arbitration awards. Now a Republican, Sen. John Kennedy of Louisiana, has cosponsored her legislation.
“This bill aims to compensate Americans who have been cheated out of hundreds of millions of dollars,” Mr. Kennedy said in a May 15 statement. “These investors have already been swindled out of their money once, and thousands of them still haven’t been given their unpaid arbitration. Our bill aims to fix that.”