Monday, September 24, 2018

FINRA Investigating Expense Reports

FINRA has started a new series of investigations, this time into broker expense reports. While one would think that an expense report item is a matter between the firm and its employee, FINRA believes it is a significant books and records violation, warranting an investigation, and attempting to bar brokers from the industry.

Given the apparent breathe and scope of this investigation, FINRA is committing significant resources to this issue, and brokers need to protect themselves. FINRA is sending out 8210 Requests, and seeking permanent bars.

Brokers are being barred from the industry over these expense reports issues. If you have an issue with your firm over an expense report, or the accuracy of any document submitted to the firm, call our office before responding to the firm. We may be able to get ahead of a FINRA Request by intervening at the firm level.

If you have received a document request from FINRA, call our office before responding. How you respond to that request can have a significant impact on how the investigation ends. We have significant experience, and success, in representing brokers and managers in FINRA books and records proceedings.

Call 212-509-6544 or email


Mark J. Astarita, Esq. has spent the last thirty years representing investors, financial professionals and firms in litigation, arbitration and regulatory matters across the country. He is a partner in the national securities law firm of Sallah Astarita & Cox, LLC and can be reached by email at or by phone at 212-509-6544.