National Adjudicatory Council Revises Sanction Guidelines for Fraudulent Conduct (FINRA Reg. Notice 15-15)

FINRA announced that the National Adjudicatory Council ("NAC") revised its Sanction Guidelines regarding misrepresentations and suitability violations.

The NAC amended the Sanction Guidelines to ensure that the overarching principles that apply to relevant determinations provide for tougher sanctions against those who commit fraud or make unsuitable recommendations to customers.

The revised Sanction Guidelines now advise FINRA adjudicators to "strongly consider barring an individual respondent, or expelling a firm, for cases involving fraud." The guidelines recommend an increased range of one to two years for individuals who violate FINRA's suitability rule, and advise adjudicators "to strongly consider barring an individual respondent where aggravating factors predominate over mitigating ones."

The revised Sanction Guidelines are effective immediately.

See: FINRA Regulatory Notice 15-15; FINRA Press Release.