Responding to FINRA Enforcement 8210 Inquiries

From the Desk of Jim Eccleston at Eccleston Law LLC:

This is the first in a three-part series.

FINRA Rule 8210 serves as a tool FINRA Enforcement uses to investigate potential violations of securities rules and regulations.  When FINRA is investigating a registered representative, it will often send the individual an inquiry letter requesting answers to questions and the production of documents.  The registered representative is required by Rule 8210 to comply with FINRA’s requests. 

One problem that can arise when a financial advisor receives a FINRA 8210 inquiry is to allow the advisor’s firm to respond on behalf of the advisor.  The interests of the firm are not always aligned with those of the advisor. If the firm is concerned that FINRA Enforcement may also be investigating the firm, the firm will protect themselves, even to the detriment of the advisor. By the time it becomes apparent that the interests of the firm and the advisor have diverged, the damage to the advisor may already be done.

Given the fact that firm will put its own interests above those of an advisor, it is prudent for the advisor to respond to FINRA.  Bottom line, if the inquiry is addressed to the advisor, then the advisor should be the one to respond.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities Fraud, Compliance Protection, Breach of Fiduciary Duty, FINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston,