FINRA's 2011 enforcement record, priorities, and trends

Abstract

Purpose

The paper's aim is to describe a recent increase in FINRA enforcement activity and to discuss how broker‐dealers and representatives may want to prepare themselves for FINRA's increasing willingness to sanction members in the wake of the recent financial crisis.

Design/methodology/approach

The paper analyzes FINRA's recent enforcement record, including trends over the past several years in disciplinary actions and fines. It also discusses FINRA's top enforcement issues in 2011; advertising, short selling, auction rate securities, and suitability; and recommends increased compliance efforts in light of FINRA's growing aggressiveness.

Findings

It is important that firms and representatives understand how the priorities of this self‐regulatory organization have changed since the financial crisis, fueling this recent growth in FINRA enforcement activity.

Originality/value

The paper offers practical guidance from experienced financial services lawyers.

Citation

Heilizer, D.G., Rubin, B.L. and McCormick, A.M. (2012), "FINRA's 2011 enforcement record, priorities, and trends", Journal of Investment Compliance, Vol. 13 No. 3, pp. 6-12. https://doi.org/10.1108/15285811211266056