FINRA Releases 2010 Enforcement Stats
In its 2010 Year in Review, FINRA reported that it brought 1173 disciplinary actions and levied $49 Million in fines and restitution. By comparison, in 2009, FINRA took only 993 disciplinary actions but levied $58 Million in fines and restitution. FINRA said that its sweeps and targeted exams included Regulation D offerings, placement agents, trading activity fees, direct market access, and junk bonds. During its sweep concerning retail sales of private placements, FINRA examined suitability, advertising, and fraud.
OUR TAKE: Perhaps most surprising is that total fines and restitution actually declined year-to-year even though the number of disciplinary actions increased by 18%. Also, FINRA continues to focus on a broker-dealer’s obligations when selling private placement securities.
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