Regulatory Notice 18-17
FINRA Revises the Sanction Guidelines
FINRA is revising its Sanction Guidelines to instruct adjudicators in the disciplinary process to consider customer-initiated arbitrations that result in adverse arbitration awards or settlements when assessing sanctions. Thus, when a respondent’s disciplinary history, and history of arbitration awards and arbitration settlements together with the violation found in a disciplinary case, form a pattern, the Sanction Guidelines advise that adjudicators should consider imposing more stringent sanctions.
These revisions to the Sanction Guidelines take effect for all complaints filed in FINRA’s disciplinary system beginning on June 1, 2018. They are available on FINRA’s website at www.finra.org/Industry/Enforcement/SanctionGuidelines.
Questions concerning this Notice may be directed to Alan Lawhead, Office of General Counsel, at (202) 728-8853.