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SEC Upholds Expulsion of Broker-Dealer from FINRA

The SEC rejected a broker-dealer's argument that a FINRA disciplinary order against the broker-dealer was "excessive and oppressive."

The broker-dealer sought review of a FINRA disciplinary action in which it found that registered representatives of the firm engaged in (i) excessive trading and churning, and (ii) offering "qualitatively unsuitable recommendations." In addition, FINRA reported that the broker-dealer did not sufficiently supervise the registered representatives.

The SEC rejected the broker-dealer's arguments against FINRA's proceedings and order of expulsion from membership, and sustained FINRA's findings and sanctions.

Primary Sources

  1. SEC Opinion: Newport Coast Securities, Inc.

Tags

Regulated Activities
Suitability and Consumer Protection Supervision / Compliance
Sub-Activity
Churning
Regulated Entities
Broker-Dealers
Body of Law
Securities Law
Jurisdiction
US - Federal
Organization
SEC