Wednesday, August 6, 2014

Brokers Beware - FINRA Disciplinary Fines Up in 2014

Most of our securities regulatory practice involves the defense of investors and financial professionals in SEC investigations, and financial pros in FINRA investigations.

Our firm has seen a significant increase in FINRA investigations during the past year. We were therefore not overly shocked to see the results of the survey by Sutherland which found that the fines imposed by FINRA in 2014 are on track to far surpass the fines reported by the regulator in 2013.

According to the report, during the first half of 2014, FINRA reported $42.4 million in fines in its monthly Disciplinary and Other FINRA Actions publications. In comparison, FINRA reported fining broker-dealers and associated persons $23 million during the first half of 2013 and $57 million for the entire year.

If FINRA continues to assess fines in 2014 at the current rate, this year’s fines will represent a 49% increase from the total fines reported by FINRA in 2013 (up from $57 million in 2013 to an estimated $85 million in 2014). That figure would represent the highest amount of fines reported by FINRA since the financial crisis and the most fines reported by FINRA since 2006 ($111 million).

FINRA investigations are always serious, and financial professionals almost always need the assistance of counsel in these investigations. If there is any doubt, read the entire report - FINRA Disciplinary Sanctions Rising Rapidly in 2014 After Significant Decline in 2013 - Sutherland Asbill & Brennan LLP.

If you are faced with a FINRA investigation, or an 8210 request, read Mark Astarita's article Tips For Responding to an SEC Subpoena, and another on responding to FINRA. Then give our office a call. Our attorneys include veteran securities litigators and former SEC Enforcement Attorneys. We have decades of experience in securities litigation matters, including the defense of enforcement actions, nationwide. For more information call 212-509-6544 or email Mark with your questions.
Post a Comment