According to FINRA, Henry Chia-How Chang (CRD #4049732), a broker based in Pasadena, California, was suspended from the securities industry on August 19, 2024, for failure to comply with an arbitration award or related settlement pursuant to FINRA Rule 9554.

FINRA Rule 9554 authorizes FINRA to suspend or cancel the registration of individuals who fail to comply with arbitration awards or related settlement agreements. The FINRA arbitration process is designed to provide investors with a fair, efficient, and less costly alternative to litigation for resolving disputes with their brokers and brokerage firms. When brokers fail to honor arbitration awards, it undermines this important investor protection mechanism. This action was taken in connection with FINRA Arbitration Case #21-01022.

The underlying arbitration case in this matter dates back to 2021, indicating that the award has been outstanding for a considerable period. Investors who successfully pursue arbitration claims expect timely payment of the awards they receive. Prolonged non-payment adds further harm to investors who have already suffered losses due to broker misconduct. FINRA's enforcement actions under Rule 9554 are designed to compel compliance and protect the integrity of the arbitration process.

For investors, this suspension means Chang is currently barred from conducting securities business at any FINRA member firm. This case underscores the importance of FINRA's arbitration enforcement mechanisms and the consequences brokers face for failing to honor their obligations. Investors can check whether a broker has any outstanding arbitration awards or a history of non-compliance using FINRA's free BrokerCheck tool, which provides comprehensive background information on current and former registered representatives.