The Financial Industry Regulatory Authority (FINRA) has announced tougher sanctions for those who commit fraud or make unsuitable recommendations to clients, as well as increased suspensions under the self-regulator’s suitability rules.
The National Adjudicatory Council for Financial Industry Regulatory Authority, its appellate tribunal for disciplinary cases, released the revised Sanction Guidelines. The Sanction Guidelines have been published since 1993, in an effort to educate member firms about securities industry rule violations and their corresponding disciplinary sanctions. California securities fraud lawyers say that the guidelines do not provide fixed sanctions for rule violations, but rather provide a framework for the committee to make disciplinary decisions in a consistent and fair manner.
The NAC is also planning to revise the guidelines to emphasize that the Financial Industry Regulatory Authority disciplinary system is aimed at protecting the investment public, deterring misconduct, and upholding high standards of business conduct. With the new guidelines, the NAC is urged to strongly consider barring individuals or firms for securities fraud cases.
FINRA’s Market Regulation and Enforcement Departments also consult the Sanction Guidelines when determining the appropriate level of sanctions to seek in settled and litigated cases, say California securities fraud lawyers.
Evans Law Firm, Inc. has offices throughout California, and handles securities fraud cases, FINRA securities arbitrations and investment fraud, stockbroker fraud, variable annuity fraud, and other consumer and financial fraud lawsuits. If you have a potential securities fraud case, please contact Evans Law Firm, Inc. at 415-441-8669 or via email at firstname.lastname@example.org.