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.
Recovery for losses related to research provided by an investment banking firm.
Recovery for losses related to Puerto Rico Bonds and Closed-End Bond Funds.
Recovery for losses related to the recommendation and sale of Non-Conforming Investments (REITs and BDCs) by a National Independent Broker/Dealer
Recovery for losses sustained by client of an RIA.
Recovery for losses related to a Future Income Payment LLC (FIP) program
Recovery for losses related to alternative investments (REITs, Direct Private Placements and Promissory Notes) sold by a regional Broker Dealer.
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