2014 FINRA analysis: a blockbuster year for fines

Abstract

Purpose

To analyze the cases and sanctions FINRA reported in 2014 and prior years to evaluate what issues may be important for broker-dealers and their representatives in the future.

Design/methodology/approach

This article discusses the overall statistics for cases reported by FINRA in 2014 and then focuses on the top enforcement issues for FINRA and some of the key cases. All of this analysis includes a comparison to enforcement statistics from prior years to help identify potential trends.

Findings

This article concludes that 2014 was a blockbuster year for FINRA as the fines imposed by the regulator increased by 125 per cent. This article also finds that while FINRA is still focusing on many of the same issues as before, including advertising and trade reporting, other issues, such as anti-money laundering, received a significant spike in attention in 2014.

Originality/value

This article contains valuable information about recent FINRA enforcement activity and practical guidance from experienced securities lawyers.

Citation

Rubin, B. and McCormick, A.M. (2015), "2014 FINRA analysis: a blockbuster year for fines", Journal of Investment Compliance, Vol. 16 No. 2, pp. 4-12. https://doi.org/10.1108/JOIC-04-2015-0026