PIABA to SEC: Stronger Action on Forced Arbitration by RIAs

PIABA Blasts FINRA For Giving $50 Million to Its Members — Instead of Addressing the Unpaid Arbitration Award Crisis

WASHINGTON, DC – JULY 10, 2025 – The Public Investors Advocate Bar Association (PIABA) strongly criticized the decision of the Financial Industry Regulatory Authority (FINRA) Board approving a $50 million rebate to its member firms. FINRA began distributing the payments in early July.

While FINRA noted “updated projections regarding FINRA’s revenues, expenses and overall market conditions” as the reason for the rebate, PIABA took issue with the pay-out, noting the money should have been used to compensate the large number of investors who have won arbitration awards against FINRA members that have gone unpaid. Shockingly, 30% of investors who win awards in FINRA arbitration never get paid.

Adam Gana, president of PIABA and managing partner of Gana Weinstein LLP, said: “Unpaid arbitration is a multimillion-dollar crisis that is plaguing FINRA and failing the innocent investors who rely on FINRA’s arbitration forum. It’s totally unacceptable that when investors win cases, they don’t see a penny of the money nearly 1/3 of the time. It’s clear that this is not the way to promote FINRA’s mission of protecting investors and promoting market integrity.”

PIABA has been studying the issue of unpaid arbitration awards for nearly a decade. Its latest report on the topic noted that the problem of unpaid awards was only growing and urged FINRA, Congress, or the SEC to tackle the unpaid arbitration award problem head-on.

PIABA’s latest criticism follows sweeping rule changes in May to FINRA’s arbitrator qualifications, which were implemented without consulting investor advocates. PIABA warned that the changes would harm investors and drastically reduce the public arbitrator pool.

“We are seeing multiple red flags indicating that FINRA is setting a dangerous new course that will ultimately hurt investors and markets,” Gana said. “Between flouting the unpaid arbitration award problem, to the fly-by-night rule changes shrinking the arbitrator pool, to pushing supervisory short-cuts like remote inspections, PIABA is very concerned.”

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ABOUT PIABA

Public Investors Advocate Bar Association is an international, not-for-profit, voluntary bar association of lawyers who represent claimants in securities and commodities

Hear what our members say about PIABA.

See how PIABA has helped protect others in investment disputes within the securities industry.

“The resources and networking opportunities provided by PIABA have been instrumental in my career development. When I was new to the practice, I was surrounded by mentors and friends who were always willing to help. Over the 12+ years I have been a member, PIABA has consistently been my most valuable support. As an experienced lawyer, PIABA offers leadership roles and opportunities to give back by mentoring the next generation of attorneys in this area. You won’t regret getting involved.”

Meyer Wilson

Courtney M. Werning, Esq. | Principal

“I have been a PIABA member since the year of its founding in 1991. For 33 years PIABA has been an unparalleled source of information and ideas, and remains an integral part of my law practice. More important, I count many of its members as my friends. PIABA has greatly enriched my life, both professionally and socially.”

Leonard Steiner

STEINER & LIBO

“Piaba has been instrumental to the growth of my career. I have made lifelong friends and have attended every annual meeting for the last 15 years. The list-serve, the dedication of its members and its national reach is the gold standard for any bar association.”

Gana Weinstein

Adam J. Gana | Managing Partner

“PIABA is the greatest bar association I have had the privilege of being a part of. PIABA and its membership have been instrumental in my growth and development as a securities litigation attorney in representing and fighting for investors. As a member of PIABA you will find many attorneys across the country who are willing to help you from sharing practice tips to arguments. There is no organization doing more good for the investing public than PIABA.”

Michael C. Bixby

Bixby Law PLLC | Founder & Managing Attorney

PRESS RELEASE – PIABA Blasts FINRA For Giving $50 Million to Its Members — Instead of Addressing the Unpaid Arbitration Award Crisis