FINRA details use of fines collected in 2018

By Mark S. Nelson, J.D. According to a report issued by the Financial Industry Regulatory Authority, Inc., the U.S.’s self-regulatory organization responsible for broker-dealer oversight spent $81.1 million on a variety of capital and strategic initiatives and on investor education and efforts to promote compliance by broker-dealers. The bulk of these funds came from fines imposed by FINRA. Of these funds, just over 81 percent were allocated for capital and strategic purposes, while just under 19 percent were allocated for educational and compliance purposes. FINRA’s first full report on fines was issued pursuant to its Financial Guiding Principles, which it published in January 2018 as part of an effort to improve the transparency of its operations. Previously, FINRA had issued an interim report on fine monies roughly in the time frame that it adopted its Financial Guiding Principles. FINRA’s 2018 report indicates that it made fines-eligible expenditures…

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