FINRA Revises the Sanction Guidelines

FINRA Regulatory Notice 11-07

February 8, 2011

FINRA published a regulatory notice to advise firms of modifications made to the FINRA Sanction Guidelines. Among other things, the modifications (i) remove the Minor Rule Violation Plan Letter from the definition of disciplinary "action" for purposes of considering prior actions; (ii) modify guidelines for violations as to sales of unregistered securities to advise adjudicators to consider higher fines and suspensions in egregious cases; (iii) incorporate into the FINRA Rule 8210 guidelines certain federal court and SEC precedents; (iv) provide for restitution and disgorgement in certain trading halt cases; (v) amend the "suitability guidelines"; (vi) add new guidelines for failures to comply with rule requirements as to customer confirmations and extended hours trading risk disclosure; and (vii) reflect amendments to the FINRA rulebook.

Cross References

FINRA Sanction Guidelines