FINRA Expands Enforcement Priorities For 2023

Posted on January 23rd, 2023 at 1:08 PM
FINRA Expands Enforcement Priorities For 2023

From the Desk of Jim Eccleston at Eccleston Law.

The Financial Industry Regulatory Authority (FINRA) has announced a plan to expand its enforcement priorities in 2023 to include new areas of focus.

FINRA specifically noted its intention to closely monitor firms’ fixed income product pricing mistakes, neglectful supervision, reporting of fractional share and short sales, as well as practices that might permit manipulative trading to occur. FINRA further announced that examinations will continue to focus on common issues such as Regulation Best Interest (Reg BI) compliance and problematic anti-money laundering (AML) policies. FINRA specifically noted that it has found “inadequate written supervisory procedures, non-specific surveillance thresholds and surveillance deficiencies”, which allows for manipulative trading to occur.

Furthermore, the notice accused firms of “not identifying specific steps and individuals responsible for monitoring for manipulative conduct; and not outlining escalation processes” for flagging certain conduct. Cybersecurity continues to be a main priority for FINRA enforcement because it constitutes “one of the principal operational risks facing broker-dealers”, according to FINRA’s report. The report further outlined FINRA’s expectation for “firms to develop and maintain reasonably designed cybersecurity programs and controls that are consistent with their risk profile, business model and scale of operations.”
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, finra

Return to Archive

TESTIMONIALS

Previous
Next

 


It was really fun seeing you fight for us. You have an amazing way of thinking out of the box.


 

Beth M.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.