By Bill St. Louis, Executive Vice President and Head of FINRA EnforcementFINRA Enforcement works on the front lines of investor protection. This blog post discusses some of the key objectives that drive this critical work.First, some brief background about FINRA and the role Enforcement plays as part of a multi-faceted regulatory program.FINRA helps ensure that everyone can participate
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NASD Rule 2830
Revenue Sharing
When FINRA determines that violations of securities rules have occurred and formal disciplinary action is necessary, the Enforcement Department files a complaint with the Office of Hearing Officers (OHO).
The Office arranges a three-person panel to hear the case. The panel is chaired by a hearing officer who is an employee of the Office of Hearing Officers. The Chief Hearing Officer appoints two
Summary
FINRA seeks comment on proposed amendments to the NASD Rule 1010 Series (Membership Proceedings) (collectively, the Membership Application Program (MAP) rules). The proposal is the result of FINRA's retrospective review of the MAP rules and processes, and is intended to reduce unnecessary burdens on new and existing firms, while strengthening investor protections. The proposed
(a) Payment to TreasurerAll fines and other monetary sanctions shall be paid to the Treasurer of FINRA and shall be used for the general corporate purposes.(b) Summary Suspension or Expulsion(1) After seven days notice in writing, FINRA may summarily suspend or expel from membership a member that fails to:(A) pay promptly a fine or other monetary sanction imposed pursuant to Rule 8310 or cost
Although I do believe 21-19 will be beneficial towards the progression of building a free and fair market structure, I do not have faith in FINRA's ability to self regulate the parties of Wall Street. By just acknowledging these problems, it does not solve them. Action must be taken. For years, these criminal enterprises have operated in tandem with the entities that regulate them, allowing
Unless otherwise provided in the decision issued under Rule 9349 or Rule 9351, a sanction (other than a bar, an expulsion, or a permanent cease and desist order) specified in a decision constituting final disciplinary action of FINRA for purposes of SEA Rule 19d-1(c)(1) shall become effective on a date to be determined by FINRA staff. A bar or a permanent cease and desist order shall become
FINRA announced today that it has sanctioned four firms—M1 Finance LLC, Open to the Public Investing, Inc., SoFi Securities LLC, and SogoTrade, Inc.—a combined $2.6 million, including over $1 million in restitution to retail customers enrolled in fully paid securities lending programs and fines of $1.6 million for the firms’ related supervisory and advertising violations.
FINRA is a self-regulatory organization for member broker-dealers that is responsible under federal law for supervising our member firms. Transparency is critical to our work and ensuring trust and confidence in the markets. The statistics below represent just some of the work we do to carry out our mission. The data present just part of the overall picture. The number of formal
(a) Issuance of Default Decisions
(1) The Hearing Officer may issue a default decision against a Respondent that fails to answer the complaint within the time afforded under Rule 9215, or a Party that fails to appear at a pre-hearing conference held pursuant to Rule 9241 of which the Party has due notice, or a Party that fails to appear any hearing that a Party is required to attend
