FINRA SEES SPIKE IN REGULATORY ACTIONS AND FINES IN 2011

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FINRA SEES SPIKE IN REGULATORY ACTIONS AND FINES IN 2011

According to this article on law.com, the Financial Industry Regulatory Authority (FINRA) reported an increase in discplinary actions and fines during the year 2011.  FINRA, which oversees brokerage firms, stepped-up its enforcement, with nearly 1,500 actions filed in 2011.  According to the article, FINRA banned 329 individuals from practicing in the industry during 2011, up from 288 in 2010.

FINRA identifies five primary areas of enforcement concern:  advertising, short selling, auction rate securities, suitability, and improper filings.  FINRA’s suitability rule requires that a brokerage firm have a reasonable basis for recommending a customer’s purchase or sale of a security.  In 2011, FINRA reported $7.7 million worth of suitability fines from 106 cases involving suitability allegations (up from 53 such cases in 2009).


If you or someone you know has lost money because of an investment that did not meet your needs or investment goals, or if a broker misrepresented an investment to you, please contact the attorneys at The Frankowski Firm at 888-741-7503 to discuss your potential legal remedies.

By |March 16th, 2012|FINRA News|

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