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

Thank you so very much for your guidance, patience, and expertise.

Beth and Steve K.

LATEST NEWS AND ARTICLES

October 13, 2025
Morgan Stanley Cuts Advisor Deferrals in 2026 Compensation Plan, Boosting Advisor Payouts

Morgan Stanley Wealth Management announced a significant change to its 2026 compensation plan, cutting advisor deferral rates by half while keeping total pay and grid structures largely unchanged.

October 10, 2025
Former Two Sigma Quant Researcher Faces Fraud Charges Over Manipulated Models

Federal prosecutors and the Securities and Exchange Commission (SEC) have filed parallel actions against Jian Wu, a former quantitative researcher at Two Sigma Investments, alleging he secretly manipulated algorithmic trading models to boost his own compensation by millions of dollars.

October 9, 2025
Former Merrill Lynch Advisors Fight Allegations of Corporate Raid

A dozen former Merrill Lynch advisors who launched their own firm, OpenArc Corporate Advisory, in Atlanta are pushing back against accusations that they orchestrated a “pre-meditated corporate raid.”