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What to Know About New FINRA Sanction Guidelines

What to Know About New FINRA Sanction Guidelines

Author: Paul A. LiebermanDate: June 11, 2018

On May 2, 2018, The Financial Industry Regulatory Authority (FINRA) announced revisions to its Sanction Guidelines to reflect changes to General Principle No. 2.  FINRA now advises that when the current violation and a respondent’s disciplinary history, including a history of arbitration awards and arbitration settlements, form a pattern, adjudicators should consider imposing more stringent sanctions.

According to FINRA, “These Sanction Guidelines revisions allow adjudicators to consider more completely a respondent’s interactions with customers and regulators. Adjudicators will no longer be limited from considering what, in some cases, could be an extensive series of arbitration awards and arbitration settlements that share similarities with the violations found in a disciplinary case.” The changes will impact disciplinary complaints filed on or after June 1, 2018. See FINRA Regulatory Notice 18-17 and FINRA FAQ.

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