FINRA recently issued its 2021 Report on FINRA’s Examination and Risk Monitoring Program. This annual report reviews emerging investment risks, as well as areas where FINRA plans to step up their enforcement efforts. As in previous years, the regulator is focusing on variable annuities as well as other historically problematic areas. These topics will be…

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Unauthorized trading FINRA arbitration cases can result in hefty awards, as two brokers recently learned. On February 4, 2021, FINRA ordered two brokers and an advisory firm to pay a $19 million award to an investor. To complicate matters, the investor and the brokers may have been related. If you are looking to invest and…

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Is Robinhood safe for the average investor? FINRA regulators are creating trouble for broker-dealers that treat investors unfairly. After Robinhood suspended trading for investors, but not powerful hedge funds, regulators started asking questions. Today, they are eyeing the recent GameStop versus Wall Street drama for evidence that Robinhood failed to follow FINRA rules. What Does…

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The Financial Industry Regulatory Authority (FINRA) fined LPL Financial $6.5 million following yet another Acceptance, Waiver, and Consent agreement (AWC) with the firm. AWCs allow advisors to consent to FINRA’s findings without admitting or denying the findings. In their latest AWC, LPL Financial consented to the findings that they failed to supervise and maintain appropriate…

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Merrill Lynch has come under scrutiny from New Hampshire regulators follow allegations of excessive trading by one of its Boston-based registered representatives, Charles Kenahan. The State has ordered Merrill Lynch to pay $26.25 to cover fines and restitution to an allegedly defrauded investor. The investor alleged losses of $100 million due to churning as well…

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It’s been said that “justice delayed is justice denied.” That old adage certainly applies to the issue of unpaid arbitration awards. When a brokerage firm or broker loses a securities arbitration before the Financial Industry Regulatory Authority (FINRA) and an award is issued, they are required to pay the award to the defrauded investor within…

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When brokers violate FINRA rules or federal securities regulations—by stealing customer funds, recommending unsuitable investments, or refusing to provide on-the-record testimony to FINRA—the Financial Industry Regulatory Authority holds them to account. FINRA publicizes disciplinary actions taken against brokers in their monthly round-up. The full April 2020 report can be viewed here.   In the most…

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When brokers violate FINRA rules or federal securities regulations—by stealing customer funds, recommending unsuitable investments, or refusing to provide on-the-record testimony to FINRA—the Financial Industry Regulatory Authority holds them to account. FINRA publicizes disciplinary actions taken against brokers in their monthly round-up. The full February 2020 report can be viewed here. In the most serious…

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When brokers violate FINRA rules or federal securities regulations—by stealing customer funds, recommending unsuitable investments, or refusing to provide on-the-record testimony to FINRA—the Financial Industry Regulatory Authority holds them to account. FINRA publicizes disciplinary actions taken against brokers in their monthly round-up. The full January 2020 report can be viewed here. In the most serious…

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