If you’re a registered securities adviser/broker, you know what Finra is. In fact, you are likely regulated in all material aspects by that national not-for-profit entity, which sets policies and writes rules for most of the country’s licensed financial professionals.
Finra — which is shorthand form for the Financial Industry Regulatory Authority — also commands sweeping powers when it comes to enforcing its dictates.
Many brokers who have been targeted in Finra investigations and ultimately disciplined know well the authority’s reach and ready ability to mete out sanctions against select individuals, ranging broadly from fines and censure to license suspension and even permanent expulsion from industry participation.
As noted in a recent Investment News account, Finra these days is prominently focused on identifying and punishing alleged “rogue brokers.” As part of its recent tracking efforts, the agency has gone through the painstaking process of ranking every one of the 634,000-plus advisers over which it commands regulatory powers.
The ranking ostensibly helps with quick identification of problem participants, and is based on things like prior disciplinary actions and employment history. Targeted brokers are investigated for things like inappropriate investment moves for clients, excessive fee charging and Finra rules violations.
An agency probe is obviously a big deal for any professional financial adviser, given its potential for a career-dampening outcome.
We duly note on our professional license defense website at the California Century Law Group that, if you are an investment professional facing a Finra investigation, you need “competent and experienced legal counsel to guide you through this challenging process.”
Indeed, your livelihood could be at stake. Our law firm specializes in licensing matters before Finra, and provides timely and sharp-focused legal representation to financial industry clients who need help to challenge the powers of Finra and prevail in matters of personal importance.
We welcome readers’ contacts to the firm.