Firm Ordered to Pay Approximately $70 Million for Systemic Supervisory Failures and Significant Harm Suffered by Millions of Customers
WASHINGTON—FINRA announced today that it has fined Robinhood Financial LLC $57 million and ordered the firm to pay approximately $12.6 million in restitution, plus interest, to thousands of harmed customers. The sanctions represent the largest financial penalty ever ordered by FINRA and reflect the scope and seriousness of the violations.
News Releases & Statements
WASHINGTON—FINRA announced today that it has ordered Merrill Lynch, Pierce, Fenner & Smith, Inc. to pay more than $8.4 million in restitution to more than 3,000 customers who incurred potentially excessive sales charges in connection with early rollovers of Unit Investment Trusts (UITs). FINRA also fined the firm $3.25 million for failing to reasonably supervise early UIT rollovers.
Regulators Providing Free Training in Recognition of World Elder Abuse Awareness Day; Program Aims to Assist Firms in Implementing Requirements of Senior Safe Act
WASHINGTON—In recognition of World Elder Abuse Awareness Day, the Financial Industry Regulatory Authority (FINRA), the U.S. Securities and Exchange Commission (SEC) and the North American Securities Administrators Association (NASAA) today announced a new resource intended to assist securities firms in implementing the training requirements of the Senior Safe Act.
Following consultations with the SEC staff, we temporarily withdrew from SEC consideration our rule filing establishing specialized arbitration panels for expungement requests so that we can further consider whether modifications to the filing are appropriate.
Board Approves 2020 Annual Financial Report; Adopts Advisory Committee Term Limits in Support of Greater Diversity and Inclusion
WASHINGTON – FINRA’s Board of Governors met on May 18-19, 2021. During the meeting, the Board approved FINRA’s 2020 Annual Financial Report, which—for the first time—will include a section on human capital describing the diversity of the self-regulatory organization’s workforce and Board of Governors. The report will be published this summer.
Statistical Overview of Brokerage Firms, Registered Representatives and Trading Activity
WASHINGTON—FINRA today published the 2021 FINRA Industry Snapshot, its annual statistical report on the brokerage firms, registered representatives and market activity that FINRA regulates.
Studies Advance Understanding of Financial Capability in the United States
WASHINGTON – The FINRA Investor Education Foundation (FINRA Foundation), in partnership with the American Council on Consumer Interests (ACCI), announced today the recipients of its higher-education awards to recognize early-career researchers who are advancing the understanding of consumer financial wellness and the complex relationships among financial literacy, financial capability and financial well-being.
New study finds lack of financial literacy linked to high levels of stress and anxiety
WASHINGTON (April 28, 2021)—A substantial number of adults in the United States between the ages of 21 and 62 felt anxiety and stress about their personal finances well before the onset of the COVID-19 pandemic, according to a new report published today. Researchers found that financial stress and anxiety are highly linked to low levels of financial literacy, problematic financial behaviors and decreased financial security.
WASHINGTON – The Financial Industry Regulatory Authority (FINRA) announced today that it has barred former Goldman Sachs & Co. research analyst Brian Maguire for twice purchasing securities after he learned a fellow analyst was upgrading his recommendation in impending research reports and for lying to FINRA staff about his trading.
We congratulate Gary Gensler on his confirmation as Chairman of the Securities and Exchange Commission. Chairman Gensler brings to the Commission an outstanding record of public service, deep expertise in the functioning of our capital markets, and consistent advocacy for the interests of investors. We look forward to working with Chairman Gensler to advance our shared mission of protecting investors and ensuring market integrity.
– Robert W. Cook, FINRA President and CEO