FINRA Extends Jurisdiction by Enforcing Japanese Securities Laws
FINRA has barred from the industry a former trader for engaging in insider trading in a stock listed on the Tokyo exchange. FINRA alleges that the insider trading violated Japanese securities laws and therefore ran afoul of FINRA’s Rule 2010 which requires registered representatives to observe “high standards of commercial honor and just and equitable principles of trade.” FINRA asserted jurisdiction even though the respondent was no longer a registered representative because the activity occurred less than two years since his termination.
OUR TAKE: The regulators have increasingly expanded their jurisdiction in time and place. Here, FINRA takes action against an individual no longer registered based on Japanese securities laws.