Broker-dealers are required to carry a fidelity bond, but not E&O coverage.

In 2014, Finra considered imposing an insurance requirement for payment of awards, but decided it would be too costly, according to a December 2015 Finra Dispute Resolution Task Force report.

The task force discussed whether to recommend reconsideration of an insurance requirement, and also explored the hiring of a consultant to review the feasibility of setting up an insurance fund, but reached no consensus, the report said.

Finra is “very concerned with awards to investors that go unpaid [and] continues to explore a number of solutions,” said the regulatory authority’s spokeswoman, Michelle Ong, in a statement.

“The reality is that problems with collection of judgments exist across all arbitration forums, government agency settlements and court orders,” Ong said.

Finra has leverage over currently registered people and dealers because it can suspend them if they fail to pay an award.

But that’s not the case for brokers or firms who leave the industry. Defunct firms are a source of many unpaid awards.

PIABA officials on Thursday claimed that Finra was hiding embarrassing statistics on unpaid awards.

“Clearly they have it,” Berkson said about the data, noting that a Wall Street Journal report Thursday cites Finra numbers through 2014.

The Journal reported that 15 percent of the $234.2 million in total arbitration awards made in 2014 remain unpaid, and that for the five years through 2014, 13 percent of awards haven’t been paid. (http://www.wsj.com/articles/personal-bankruptcy-can-protect-brokers-who-dont-pay-awards-1456376402)