FINRA Enforcement Reveals Interesting Disciplinary Statistics

Posted on May 28th, 2014 at 5:47 PM

From the Desk of Jim Eccleston at Eccleston Law Offices:

According to the data released by FINRA, customer complaints and the total amount of fines have been falling. However, enforcement actions related to record keeping and advertising increased.

Total fines reported fell by 27% to $57 million last year from $78 million in 2012. The number of major fines and big penalties of more than $1 million dropped to about $18.5 million from 43 million in 2012. Likewise, fines related to disciplinary violations fell for a second year to $65 million after topping at $71.9 million in 2011. Fines for suitability violation dropped to $5.1 million last year, from $19.4 million in 2012

In addition, investor complaints also have declined steadily from 5,067 in 2012 to less than half 2,334 last year. Cases related to suitability, a common complaint in product failure cases related to the financial crisis, dropped 38% to 73 last year from 117 in 2012.

The total number of enforcement actions brought, however, remained almost flat at 1,535 last year.

Fines related to electronic communications, which include retention and supervision of emails, jumped 132% to $15.1 million last year from $6.5 million in 2012, despite the fact that FINRA brought just 66 cases, nearly the same as the year before. These fines included a $7.5 million fine against LPL Financial

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.


Return to Archive



Thank you for your professional assistance with this matter. You are very good at what you do.

John T.


May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.


May 15, 2024
NFA Issues Order Against Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.