Adjunct Professor George Friedman was quoted in an InvestmentNews article regarding Finra’s proposal related to unpaid arbitration awards.
But George Friedman, who served as director of Finra arbitration from 1998-2013, said the Finra board took a significant step with its proposals. Previously, Finra allowed clients to take a defunct brokerage to court prior to initiating an arbitration proceeding. Now, Finra is allowing clients to shift gears and go to court while arbitration is underway.
“To change in the middle is a big deal,” said Mr. Friedman, owner of an eponymous consulting firm. “It’s unprecedented in my experience.”
Finra is moving slowly but surely to address weaknesses surrounding arbitration payments, he said.
“Finra tends to work incrementally,” Mr. Friedman said.
