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FINRA’s disciplinary actions in 2018:Increased fines ordered with significant drop in number of cases

Brian Rubin (Eversheds Sutherland (US) LLP, Washington, DC, USA)
Adam Pollet (Eversheds Sutherland (US) LLP, Washington, DC, USA)

Journal of Investment Compliance

ISSN: 1528-5812

Article publication date: 21 August 2019

Issue publication date: 16 October 2019

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.

Keywords

Citation

Rubin, B. and Pollet, A. (2019), "FINRA’s disciplinary actions in 2018:Increased fines ordered with significant drop in number of cases", Journal of Investment Compliance, Vol. 20 No. 3, pp. 1-5. https://doi.org/10.1108/JOIC-04-2019-0024

Publisher

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Emerald Publishing Limited

Copyright © 2019, Eversheds Sutherland (US) LLP