FINRA (Financial Industry Regulatory Authority) announced that the National Adjudicatory Council (NAC) revised guidelines regarding financial exploitation of vulnerable individuals or individuals with diminished capacity. In addition, the new Sanction Guidelines include three new guidelines relating to systemic supervisory failures, borrowing and lending arrangements, and short interest reporting. The NAC revised the guidance concerning sanctions imposed by other regulators, indicating that these sanctions may be considered as mitigating factors.
The NAC is FINRA’s appellate tribunal for disciplinary cases and is a 15-member committee composed of industry and non-industry members. The Sanction Guidelines were originally published in 1993 and were most recently updated in May 2015. The purpose was to familiarize member firms with some of the typical securities law or FINRA rule violations that occur, and the range of disciplinary sanctions that may result from those rule violations.
The Sanction Guidelines are intended to assist FINRA’s adjudicators—Hearing Panels and the NAC—in imposing appropriate sanctions consistently and fairly in disciplinary proceedings. FINRA’s Sanction Guidelines are also used in determining the appropriate level of sanctions to seek in settled and litigated cases.
FINRA, overseen by the SEC (Securities and Exchange Commission) is dedicated to investor protection and market integrity. It regulates brokerage firms doing business with the public in the United States. FINRA, writes rules, examines for and enforces compliance with rules and federal securities laws. FINRA also provides education and training for registered broker-dealer personnel and, informs the investing public regarding issues and violations. To see if your investment professional is regulated by FINRA, please go to BrokerCheck. And for more information, visit www.finra.org.
If you wish to discuss a possible claim, please contact Darren Blum at 1-877-786-2552 (Stock Law), www.stockattorneys.com for a free consultation.