More On Legal & Compliancefrom The Advisor's Professional Library
- Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices. Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
- U.S. Securities and Exchange Commission Information This information sheet contains general information about certain provisions of the Investment Advisers Act of 1940 and selected rules under the Advisers Act. It also provides information about the resources available from the SEC to help advisors understand and comply with these laws and rules.
The Financial Industry Regulatory Authority (FINRA) brought more enforcement actions against broker-dealers through April 2011 than in the same period for the past three years, according to a Reuters report.
According to Bradley Bennett, the BD regulator's enforcement chief, FINRA has brought 449 cases through April 30, the highest amount for this four-month period since 2007. FINRA also has levied $14.5 million in fines, an increase from the same period last year, Bennett said during a May 18 Securities Industry and Financial Markets Association luncheon in New York.
By comparison, Reuters notes that, according to Bennett, FINRA brought 1,310 disciplinary actions and levied fines totaling $42.5 million for all of last year, compared with 1,158 actions and $48 million of fines in 2009.
Bennett also noted during the luncheon that the bulk of FINRA’s work, 70% to 80%, involves holding brokers accountable for basic rules, from mailing investment disclosures and vetting customers to protecting the privacy of client information.
In a related note, FINRA on May 15 launched the FINRA Disciplinary Actions Online database, a Web-based searchable system allowing investors to access brokers’ disciplinary actions via FINRA’s website at www.finra.org.