Recent Study Shows FINRA Enforcement Actions Declined Last Year

Posted on March 17th, 2023 at 10:09 AM
Recent Study Shows FINRA Enforcement Actions Declined Last Year

From the Desk of Jim Eccleston at Eccleston Law


The Financial Industry Regulatory Authority (FINRA) reported only $45 million in fines
last year in comparison to $103 million in 2021, according to an annual report on FINRA
disciplinary enforcement.
The 2021 fine total was boosted by a record penalty levied against Robinhood, but the
2022 fine total still would be 2% less than in 2021 if the Robinhood penalty was disregarded.
FINRA ordered nearly $21 million in restitution last year, which constituted a 55% reduction
from $47 million in 2021. The decrease in restitution primarily can be attributed to a decline in
the number of “supersized” restitution orders, or restitution orders totaling $1 million or more.
FINRA ordered only three “supersized” restitution orders last year, which totaled $17 million,
compared to ten totaling $42 million in 2021.
Total monetary sanctions, which includes fines, restitution, and disgorgement, reached
$72 million in 2022, which constitutes a 52% decrease from $150 million in the previous year.
Furthermore, FINRA initiated 463 disciplinary actions in 2022, compared to 534 in 2021, which
constitutes a 13% decline. Although FINRA’s data illustrates a downward trend in enforcement
actions since 2017, which is the year Robert Cook became the new FINRA CEO, it is predicted
that FINRA likely will bring more enforcement actions related to Regulation Best Interest (Reg
BI) in 2023.
Eccleston Law LLC represents financial advisors and investors nationwide in securities, employment, transition, regulatory and disciplinary matters. 

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