FINRA's disciplinary actions in 2018:Increased fines ordered with significant drop in number of cases. Issue 3 (14th October 2019)

• Record Type: Journal Article
• Authors: Rubin, Brian; Pollet, Adam
• Is Part Of: Journal of investment compliance. Volume 20:Issue 3(2019)
• Page Start: 1
• Page End: 5
• Publication Date: 2019-10-14
• Subjects: Financial Industry Regulatory Authority (FINRA) -- Enforcement -- Sanctions -- Fines -- Disciplinary action -- Restitution; Institutional investments -- Law and legislation -- Periodicals; Securities -- Periodicals; 332.6
• DOI: 10.1108/JOIC-04-2019-0024
• Languages: English
• ISSNs: 1528-5812

Abstract

Abstract : Purpose: To analyze FINRA's 2018 disciplinary actions, the issues that resulted in the most significant fines and restitution, and the emerging enforcement trends from 2018 and beyond. Design/methodology/approach: Discusses the disciplinary actions in 2018 and prior years; details the top 2018 enforcement issues measured by total fines assessed, including anti-money laundering, suitability, variable annuity, and short selling; and explains current enforcement trends, including higher fines per case, more cases with larger sanctions in the second half of the year, share class issues, and inadequate resources. Findings: In 2018, the Financial Industry Regulatory Authority (FINRA) ordered fewer fines than in 2017, and the number of cases and amount of restitution were down. Practical implications: Firms and their representatives should heed the trends in both the substantial fines per case that FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value: Expert analysis and guidance from experienced securities enforcement lawyers.