Wednesday, June 14, 2017

FINRA Guidance and Rogue Brokers

According to a recent story in Investment News, FINRA is going to provide brokerages with more guidance on dealing with "rogue brokers." Finra CEO Robert Cook promises to give brokerages more guidance on overseeing rogue brokers  explains that "[FINRA] intends to help brokerages better identify and supervise brokers with checkered disciplinary histories who may pose risks to investors. In coming months, the broker-dealer self-regulator will delineate [FINRA's expectations]...." The article relates pressures on FINRA to do something about brokers that move from firm to firm.

At its May meeting, Finra's board advanced proposals that would allow tougher penalties for brokers with certain past infractions, enable disciplinary hearing panels to restrict the activities of brokers and firms while a case is on appeal, and require firms to strengthen supervision while a "disqualification request" is under review or a broker is appealing a hearing decision.

There's a working group on this issue and FINRA is considered other measures, with any final regs needing SEC approval.

http://lawprofessors.typepad.com/elder_law/2017/06/finra-guidance-and-rogue-brokers.html

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