FINRA Disciplinary Actions Rise for the First Time Since 2016

Posted on March 17th, 2025 at 11:51 AM
FINRA Disciplinary Actions Rise for the First Time Since 2016

From the desk of Jim Eccleston at Eccleston Law

The Financial Industry Regulatory Authority (FINRA) increased its enforcement actions in 2024, marking the first rise in disciplinary cases since 2016, as reported by AdvisorHub.

FINRA initiated 552 enforcement actions last year, a 22 percent increase from 453 in 2023. The cases include settlements and complaints against individual advisors and firms, were tracked through FINRA’s disciplinary database ahead of the regulator’s official report.

Although disciplinary actions increased, total monetary sanctions declined. FINRA imposed $87 million in penalties last year, down 14 percent from $101 million in 2023. Fines dropped 35 percent to $59 million, largely due to the absence of a major penalty like the $24 million fine against Bank of America Securities in 2023.

However, restitution payments surged 207 percent year-over-year to $23 million. This increase was driven by a December enforcement action against Edward Jones, Osaic Wealth, and Cambridge Investment Research, according to AdvisorHub. The firms were ordered to pay a combined $8.2 million in restitution to customers who were improperly charged commissions on mutual fund sales.

AdvisorHub reports that FINRA’s enforcement activity has remained strong into 2025. In one of its first major settlements of the year, two units of Robinhood Markets Inc. agreed to pay $26 million to settle allegations that they failed to respond to red flags about potential misconduct and did not verify the identities of thousands of customers.

 

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

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

April 29, 2025
Merrill Lynch Fires Veteran Advisor for Ignoring Mandated Commission Discounts

Merrill Lynch has terminated Daniel G. Diaz, a 37-year industry veteran, for refusing to apply commission discounts to certain client accounts as instructed by management, according to his Central Registration Depository (CRD) record.

April 28, 2025
Former Morgan Stanley Advisor Barred After Fraudulent Check Allegations

Roger A. Gallagher has accepted an industry bar from FINRA rather than cooperate with a regulatory investigation. According to a FINRA Acceptance, Waiver, and Consent letter (“AWC”).

April 25, 2025
Rosedale Advisory Firm Fined for Role in NCAA Player Referral Bribery Scheme

The Securities and Exchange Commission (SEC) has finalized a cease-and-desist proceeding against Rosedale, a former SEC-registered investment adviser, for violations of the Investment Advisers Act of 1940.