FSI Statement on FINRA’s Customer Recovery White Paper

Today, FINRA released a whitepaper examining customer recovery and unpaid arbitration awards. Below is a statement from the Financial Services Institute’s (FSI) Executive Vice President & General Counsel David Bellaire:

“FSI supports efforts to ensure that investors receive the recovery to which they are entitled whether they receive an award through FINRA arbitration, a court decision or through some other forum. However, the solution to this problem should not require those who honor their obligations to bear the burden of the bad acts of those that left the industry or are otherwise avoiding their responsibilities. We look forward to participating in this important dialogue with regulators, policy makers and other stakeholders and appreciate FINRA’s efforts to initiate it.”

About the Financial Services Institute (FSI): The Financial Services Institute (FSI) is the only organization advocating solely on behalf of independent financial advisors and independent financial services firms. Since 2004, through advocacy, education and public awareness, FSI has successfully promoted a more responsible regulatory environment for more than 100 independent financial services firm members and their 160,000+ affiliated financial advisors – which comprise over 60% of all producing registered representatives. We effect change through involvement in FINRA governance as well as constructive engagement in the regulatory and legislative processes, working to create a healthier regulatory environment for our members so they can provide affordable, objective advice to hard-working Main Street Americans. For more information, please visit financialservices.org.