FINRA released it's "year in review" where it crows about its successes during the past year. The "review" is at their web site for those who are interested, but the main takeaway for our firm and clients:
- In 2012,Office of Fraud Detection and Market Intelligence referred 692 matters involving potential fraudulent conduct to the SEC and other federal or state law enforcement agencies, including 347 insider trading referrals and 260 fraud referrals.
- FINRA brought 1,541 disciplinary actions (an increase of 53 from 2011) against registered individuals and firms, levied fines totaling more than $68 million and ordered resititution of $34 million to harmed investors. In addition, FINRA expelled 30 firms from the securities industry, barred 294 individuals and suspended 549 brokers from association with FINRA-regulated firms
And for those of you who complain that FINRA is an industry organization that coddles the financial industry, the opening remarks from Richard Ketchum, FINRA's Chairman and CEO:
"FINRA fulfilled its role as the first line of defense for investors through a comprehensive and aggressive enforcement program, supported by a realigned and more risk-based examination program and the provision, for the first time, of cross-market surveillance programs that more effectively detected electronic manipulative trading. Protecting investors and helping to ensure the integrity of the nation's financial markets is at the heart of what we do every day."