The Use of an Inability-to-Pay Defense in Intra-Industry Cases
Published on:
November 4, 2011
Submitted to:
FINRA
Submitted by:
SIFMA
SIFMA provides comments to the Financial Industry Regulatory Authority (FINRA) expressing concerns with the use of the inability-to-pay defense in intra-industry cases under FINRA Rule 9554. Currently, Rule 9554 precludes respondents from raising the inability-to-pay defense only in cases involving customer claimants. In doing so, the rule unfairly discriminates against industry claimants who are not afforded similar protections and as a result, cannot collect valid arbitration awards.