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Regulation and Compliance > Federal Regulation > FINRA

FINRA Reveals Where Fine Money Went

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The Financial Industry Regulatory Authority collected some $65 million in fines last year — down sharply from almost $174 million in 2016. But for the first time, the group is sharing details on how those resources were spent.

Along with $1 million in reserves, the regulatory body said these monies were used for capital/initiatives and strategic spending to “promote more effective and efficient regulatory oversight by FINRA or that enable improved compliance by member firms, and capital/initiatives that are required by new legal, regulatory or audit requirements.”

Funding also went toward work to educate investors, promote compliance by member firms and ensure that FINRA employees “are highly trained,” according to the organization.

Specific project spending included:

  • $8.1 million for examination and risk monitoring management platform
  • $7.9 million on market surveillance programs
  • $7.3 million on examination analytic tools
  • $6.6 million to facilitate compliance with FINRA rules and federal securities laws
  • $6.2 million on trade reporting for Treasury securities
  • $6.2 million on case management
  • $5.0 million on training FINRA exam staff regarding the markets, products and businesses that the organization regulates
  • $4.8 million on registration, testing and continuing education systems
  • $4.5 million for investor-education, including the Fund Analyzer tool
  • $3.9 million on fraud and market misconduct detection
  • $1.8 million on trade transparency systems
  • $1.6 million on a pilot program related to trading of small-cap equity securities
  • $1.5 million to improve electronic filing systems used by member firms to submit documents for FINRA review
  • $0.6 million on dispute resolution program administration

— Check out FINRA Hits Betterment With $400K Fine on ThinkAdvisor.


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