Regulatory Notice 11-13

FINRA Revises Sanction Guidelines

Effective Immediately

Executive Summary

FINRA has revised two sections of its Sanction Guidelines—the General Principles Applicable to All Sanctions Determinations and the Principal Considerations in Determining Sanctions—to reflect recent developments in FINRA disciplinary cases. Specifically, the revisions:

  • clarify the causation standard for when FINRA adjudicators order restitution;
  • recognize that FINRA adjudicators may order that a respondent’s illgotten gains be paid to those injured by the respondent’s misconduct, where appropriate;
  • reflect that not every factor listed in the principal considerations has the potential to be aggravating and mitigating; and
  • direct adjudicators to consider sanctions imposed by another regulator for the same misconduct when determining a sanction.

 

The revised Sanction Guidelines are effective immediately and available on FINRA’s website.


You may direct questions concerning this Notice to:

  • Gary Dernelle, Office of General Counsel, at (202) 728-8255, and
  • Jennifer Brooks, Office of General Counsel, at (202) 728-8083.