![]() ![]() ![]() They can prove that they have reached a voluntary settlement on payment terms with the complaining customer.They can prove that the arbitration award has actually already been paid in full.What Defenses Do Brokers Have Against A FINRA Rule 9554 Action?īrokerage firms and stockbroker primarily have four defenses to avoid expedited suspension under FINRA Rule 9554: Specifically, regulators are empowered to send the violating party a 21-day written notice that their securities industry membership will be revoked if they do not rectify the problem. If a broker or brokerage firm fails to comply with this requirement, then industry regulators can use FINRA Rule 9554 to take immediate enforcement action against them.įINRA Rule 9554 allows for expedited suspension or cancellation of membership of any party that fails to comply with a FINRA arbitration award. Under FINRA’s securities industry regulations, arbitration awards must be paid within 30 days of the date that the award was granted. FINRA Rule 9554 allows FINRA to ensure that brokers and brokerage firms comply with the terms of securities arbitration awards. According to FINRA Disciplinary actions for March 2023, the following individuals were suspended from FINRA for failing to comply with a FINRA arbitration award or settlement agreement pursuant to FINRA rules: NAMEīrokers and brokerage firms are obligated to satisfy all FINRA arbitration judgements, without any unreasonable or unwarranted delay. ![]()
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