FINRA Won’t Require Broker/Dealers to Carry Liability Insurance to Cover Customer Losses
One of the most absurd and well kept secrets…brokerage firms are not required to carry liability coverage for customer losses. In fact, many only have to have $5,000 net capital to operate. Looks like there is a movement afoot to change this insanity but clearly not by the Financial Industry Regulatory Authority (FINRA). Business as usual for them.