The Financial Industry Regulatory Authority said Monday that its National Adjudicatory Council has introduced new Sanction Guidelines that includes coverage for financial exploitation of vulnerable individuals or individuals with diminished capacity.
It also includes three new guidelines relating to systemic supervisory failures, borrowing and lending arrangements, and short interest reporting.
The NAC, via Regulatory Notice 17-13, also revised the guidance concerning sanctions imposed by other regulators, indicating that these sanctions may be considered as “mitigating factors.”
The revised Sanction Guidelines are effective immediately.
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The NAC is FINRA’s appellate tribunal for disciplinary cases and is a 15-member committee composed of industry and non-industry members.