Financial Planning (September 29, 2022) - FINRA is saying there should be no limit on fines for violations like excessive trading and recommending tailored penalties for individual advisors and small and larger firms amid an overhaul of its recommended sanctions for various types of financial malfeasance.
But some observers note that mere guidelines, rather than strictly enforced rules, can only go so far.
FINRA announced on Sept. 29 the first large overhaul of its sanctions guidelines in at least five years. These recommendations are widely consulted by FINRA's internal disciplinary board, the National Adjudicatory Council, as well as other industry watchdogs when they're deciding what penalties should be imposed for violations running from omissions and errors to outright fraud.