Regulatory Notice 08-70

FINRA Provides Guidance Regarding Credit for Extraordinary Cooperation

Executive Summary

FINRA is issuing this guidance to apprise firms of the circumstances in which extraordinary cooperation by a firm or individual may directly influence the outcome of an investigation. The types of extraordinary cooperation by a firm or individual that could result in credit can be categorized as follows: (1) self-reporting before regulators are aware of the issue; (2) extraordinary steps to correct deficient procedures and systems; (3) extraordinary remediation to customers; and (4) providing substantial assistance to FINRA's investigation. These steps alone or taken together can be viewed in a particular case as extraordinary cooperation and, depending on the facts and circumstances, can have an impact on FINRA's enforcement decisions.1

Questions regarding this Notice, should be directed to Susan Merrill, Executive Vice President, Enforcement, at (646) 315-7300.

1 This Regulatory Notice is intended to provide member firms and their associated persons with guidance concerning the factors that FINRA Enforcement considers when assessing the sanctions it will seek in the context of settlement discussions that precede the filing of a formal disciplinary action. Nothing herein is intended to alter the guidance for adjudicators set forth in the Principal Considerations in Determining Sanctions contained in FINRA's Sanction Guidelines.