FINRA Profit Resumes as Fines and Restitution Jumped 44%

Posted on July 9th, 2021 at 4:28 PM
FINRA Profit Resumes as Fines and Restitution Jumped 44%

From the Desk of Jim Eccleston at Eccleston Law:

The Financial Industry Regulatory Authority (FINRA) reports that fines and restitution jumped by 44%. According to FINRA’s annual report, the regulator earned $19.8 million in profit after suffering a net loss of $45.9 million in 2019. Further, revenue increased to $1.1 billion compared to $899 million in 2019 “due primarily to higher trading volumes and a large number of public offerings”, according to the report. FINRA collected $57 million in fines, which includes $25.2 million in restitution to victim investors; the total represents a $17.5 million or 44% increase in fines from the prior year. In 2020, FINRA barred 246 advisors and suspended another 375 over the course of 5,623 exams throughout the year.

Meanwhile, Chief Executive and President Robert Cook’s salary decreased to $3.12 million from $3.16 million in 2019. However, Cook donated $150,000 of his 2019 bonus to FINRA’s Investor Education Foundation. According to Cook, this year’s FINRA budget “reflects the expectation that many of the adjustments we made to our operations during 2020—and the related financial implications we experienced during this time—will continue well into 2021.” In recent years, FINRA has covered its operational shortfall by using its investment fund reserves; however, Cook has cut expenses via other initiatives, which included moving some employees to lower-cost locations. 

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

Tags: eccleston, eccleston law, finra, fines

Return to Archive



You are the best attorneys in the country.



February 21, 2024
SEC Alleges Fraud Against Morgan Stanley and Former Executive in Block Trading Business

As reported by the Wall Street Journal, the Securities and Exchange Commission (SEC) has charged Morgan Stanley & Co. LLC and its former head of equity syndicate desk, Pawan Passi, with a multi-year fraud involving the disclosure of confidential information related to block trades.

February 20, 2024
Challenges Persist: Firms Struggle to Comply with Regulation Best Interest

FINRA's annual report for 2024 reveals a concerning trend among broker-dealers, with numerous instances of violations of Regulation Best Interest (Reg BI).

February 19, 2024
FINRA Flags Violations in 70% of Broker-Dealers' Crypto Communications

During a two-year-old targeted examination, the Financial Industry Regulatory Authority (FINRA) has identified potential violations in 70 percent of broker-dealers' communications about cryptocurrencies.