FINRA Targets Repeat Offenders and Reg BI Violations in Enforcement Focus

Posted on May 29th, 2024 at 1:22 PM
FINRA Targets Repeat Offenders and Reg BI Violations in Enforcement Focus

From the desk of Jim Eccleston at Eccleston Law 

AdvisorHub reports that the Financial Industry Regulatory Authority (FINRA) is advocating more stringent penalties for repeat offenders who fail to comply with FINRA rules or securities laws.

FINRA’s enforcement chief, William St. Louis, also outlined various key objectives, including ensuring firms' compliance with Regulation Best Interest (Reg BI) and best execution requirements, conducting timely targeted sweeps, and enhancing the efficiency of FINRA investigations. He reiterated FINRA's focus on protecting senior and vulnerable investors, noting that cases involving direct harm to customers are among the most impactful actions pursued by the regulator.

Notably, St. Louis mentioned FINRA's increasing enforcement actions targeting Reg BI violations, citing the expulsion of two firms for such violations. Other cases involved failures to provide required Customer Relationship Summary forms, excessive trading,
and issues related to complex products and variable annuities, with more cases in the pipeline.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

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