FINRA’s disciplinary actions in 2017: increased restitution ordered with minimal changes in number of cases
Journal of Investment Compliance
ISSN: 1528-5812
Article publication date: 19 July 2018
Issue publication date: 14 August 2018
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.
Keywords
Citation
Rubin, B. and Pollet, A. (2018), "FINRA’s disciplinary actions in 2017: increased restitution ordered with minimal changes in number of cases", Journal of Investment Compliance, Vol. 19 No. 2, pp. 19-23. https://doi.org/10.1108/JOIC-04-2018-0020
Publisher
:Emerald Publishing Limited
Copyright © 2018 Eversheds Sutherland (US) LLP.