On February 28, Sutherland Asbill & Brennan issued a press release announcing the results of their latest survey of Financial Industry Regulatory Authority (FINRA) sanctions against broker-dealers and associated persons. In brief, the survey found that in 2010:
– FINRA’s disciplinary actions increased from 1,158 to 1,310 — an increase of more than 13 percent and a reversal of “the substantial slowdown in disciplinary actions filed between 2006 and 2008.”
– FINRA fined firms and individuals approximately $45 million, “falling just short of 2009’s $50 million in fines.”
– Advertising cases generated the largest amount of total fines (approximately $4.75 million), and Credit Default Swap (CDS) cases the second largest amount of fines ($4.5 million in six cases).
– Fines in mutual fund cases “have been on the decline,” while advertising cases “seem to be of growing importance to FINRA.”
This post was originally published on the legacy ABA Section of Administrative Law and Regulatory Practice Notice and Comment blog, which merged with the Yale Journal on Regulation Notice and Comment blog in 2015.