FINRA’s 5 Biggest Fine Categories in 2013

Posted on March 4th, 2014 at 5:00 PM

From the Desk of Jim Eccleston at Eccleston Law Offices:

The Top Five enforcement issues measured by total fines assessed in 2013 were electronic communications (66 cases and $15.1million in fines), trade reporting (198 cases totaling $12.1 million in fines); short selling ($7.2 million in fines); books and records (95 cases and $7.1 million in fines); and municipal securities (51 cases and $6 million in fines).

While the total fines assessed by FINRA in 2013 fell by 27%, the number of cases brought was nearly the same as the previous year.

The number of firms barred by FINRA also dropped from 30 to 24 in 2013, a decrease of 20%, while the number of individuals suspended or barred rose. The number of individuals suspended jumped from 549 to 670 in 2013, an increase of 22%, while the number of individuals barred rose from 294 to 429 in 2013, an increase of 46%.

According to FINRA’s “Statistical Review,” the number of disciplinary actions declined slightly from 1,541 to 1,535 in 2013.

In addition to the $57 million in fines assessed by FINRA in 2013, the regulator also ordered firms and their representatives to pay nearly $24 million in restitution in 2012, a decrease of approximately 29% from 2013’s record-breaking $34 million.

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.

Related Attorneys: James J. Eccleston


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