FINRA's disciplinary actions in 2017: increased restitution ordered with minimal changes in number of cases. Issue 2 (19th July 2018)

• Record Type: Journal Article
• Authors: Rubin, Brian; Pollet, Adam
• Is Part Of: Journal of investment compliance. Volume 19:Issue 2(2018)
• Page Start: 19
• Page End: 23
• Publication Date: 2018-07-19
• 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-04-2018-0020
• Languages: English
• ISSNs: 1528-5812

Abstract

Abstract : Purpose: The purpose of this paper is to analyze the Financial Industry Regulatory Authority's (FINRA) 2017 disciplinary actions, the issues that resulted in the most significant fines and restitution and the emerging enforcement trends from 2017 and beyond. Design/methodology/approach: The approach of this paper discusses the disciplinary actions in 2017 and prior years, details the top 2017 enforcement issues measured by total fines assessed, including anti-money laundering, trade reporting, electronic communications, books and records, research analysts and research reports, and explains current enforcement trends, including restitution, suitability cases and technological issues. Findings: In 2017, restitution more than doubled from the prior year, resulting in the fourth highest total sanctions (fines combined with restitution and disgorgement) assessed by FINRA over the past 10 years. Practical implications: Firms and their representatives should heed the trends in both the substantial restitution FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value: This paper provides expert analysis and guidance from experienced securities enforcement lawyers.