{"id":1643,"date":"2015-05-15T17:09:45","date_gmt":"2015-05-15T17:09:45","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2015\/05\/finra_gets_tough_with_sanction"},"modified":"2022-03-22T14:25:32","modified_gmt":"2022-03-22T19:25:32","slug":"finra-gets-tough-with-sanction","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/finra-gets-tough-with-sanction\/","title":{"rendered":"FINRA Gets Tough With Its Sanctions Against Brokers For Suitability Violations"},"content":{"rendered":"

\t\t\t\tThe Financial Industry Regulatory Authority has decided to take tougher actions against brokers who violate suitability standards. The regulator is recommending that the National Adjudicatory Council, which oversees disciplinary proceedings, raise its suggested suspensions for brokers who make unsuitable recommendations from one year to two years. FINRA wants brokers who commit fraud be potentially barred and offending firms face potential expulsion.<\/p>\n

FINRA’s revisions to its Sanctions Guidelines are to go into effect right away. They exist to protect investors from brokers who don’t comply with the suitability rule. The rule states that brokers can sell products that are to their benefit as long as these products also are in alignment with helping investors meet their investment goals. <\/p>\n

Despite the changes, InvestmentNews reports, there are those who think that FINRA’s proposed sanctions are insufficient and, also, that there may be negative consequences for investors. For example, defendants facing two-year suspensions might opt to fight cases against them rather than settle because of the tougher penalty. <\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Financial Industry Regulatory Authority has decided to take tougher actions against brokers who violate suitability standards. The regulator is recommending that the National Adjudicatory Council, which oversees disciplinary proceedings, raise its suggested suspensions for brokers who make unsuitable recommendations from one year to two years. FINRA wants brokers who commit fraud be potentially barred […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3773,3774,3739],"tags":[],"class_list":["post-1643","post","type-post","status-publish","format-standard","hentry","category-broker-fraud","category-broker-dealers","category-finra"],"yoast_head":"\nFINRA Gets Tough With Its Sanctions Against Brokers For Suitability Violations — Investor Lawyers Blog — May 15, 2015<\/title>\n<meta name=\"description\" content=\"The Financial Industry Regulatory Authority has decided to take tougher actions against brokers who violate suitability standards. The regulator is — May 15, 2015\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/finra-gets-tough-with-sanction\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"FINRA Gets Tough With Its Sanctions Against Brokers For Suitability Violations — Investor Lawyers Blog — May 15, 2015\" \/>\n<meta name=\"twitter:description\" content=\"The Financial Industry Regulatory Authority has decided to take tougher actions against brokers who violate suitability standards. 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