FINRA: Promulgating Tougher Sanctions Guidance for Rule Violations
In May 2015, the Financial Industry Regulatory Authority’s (FINRA) National Adjudicatory Council (NAC) released the revised Sanction Guidelines (SG) that provide increased monetary penalties and tougher sanctions for FINRA member firms and brokers committing fraud or violating suitability rules.
The SG outline the general principles for adjudicators to discipline violators. These include harsher sanctions, lower standards for imposing suspensions, censures, and barring and, of course, increased monetary penalties. Included is the option to ‘escalate’ actions for fraud and violation of the Suitability Rule, and stiffer penalties for recidivists who show a reckless disregard for regulatory requirements, investor protections, or market integrity. Adjudicators also are encouraged to tie monetary penalties to the Consumer Price Index.
In light of the enhanced SG, individuals and member firms should expect more aggressive action from FINRA’s Enforcement staff. The basic requirement to strengthen policies, procedures, and compliance remain vital to avoiding enforcement and fines.
In this two hour, LIVE Webcast, a panel of distinguished professionals, thought leaders, and practitioners assembled by The Knowledge Group will help FINRA’s member firms and associated brokers understand the new, tougher Sanction Guidelines for FINRA Rule Violations in 2015. The speakers also will discuss the consequences of the updated Sanction Guidelines and provide advice on mitigating the risk of violation through development of sound compliance programs.
Key issues that will be covered in this course are:
- Revised FINRA Sanction Guidelines (SG)
- Deterrence and Investor Protection
- Sanctions Determinants
- ‘Escalating’ Sanctions for Recidivists
- Tougher Sanctions for Fraud
- Tougher Sanctions for Suitability Rule Violations
- Significant Penalties Tied to CPI
- Litigation Risks
- Non-compliance and Risk Mitigation
- Sound Compliance Programs
- Sanction Guidelines
- Applicable Rules Affected By Changes to Fraud Guidelines
- Review of General Principles 1 and 2 in light of changes to Sanction Guidelines
- Basic overview of principal considerations in Sanction Guidelines
- Practical consideration for imposition of sanctions in cases involving fraud or unsuitability - identification and discussion of legal issues relating to case resolution.
- Practical concerns on settlement and litigation in light of revised Sanction Guidelines and efforts to increase sanctions in settled and litigated cases.
Who Should Attend:
- Financial Crime Attorneys & Consultants
- Finance Lawyers
- Business Lawyers
- Securities Attorneys
- Investment Advisers
- Broker Dealers
- Investment Bankers
- Fraud Monitoring
- Investment advisers
- Investment Bankers
- Private Companies
- Private Counsel
- Other Related/Interested Professionals
Alan Lawhead is Vice President and Director of the Appellate Group in FINRA's Office of General Counsel in Washington, DC. He leads a group of appellate attorneys who defend FINRA’s decisions that are on appeal to the Securities and Exchange Commission. The Appellate Group also provides legal advice to FINRA’s appellate body, the National Adjudicatory Council, which rules on disciplinary cases, membership applications, statutory disqualification applications, and examination waivers.
Before joining FINRA, Mr. Lawhead worked as a litigation associate with Gibson Dunn & Crutcher LLP, in California. He served as law clerk to U.S. District Judge John S. Rhoades. Mr. Lawhead graduated from the University of Southern California and received his JD and MBA degrees from Georgetown University.
Alan Lawhead is Vice President and Director of the Appellate Group in FINRA's Office of General Counsel in Washington, DC. …
Zandra Foley is a seasoned trial attorney who represents businesses and individuals in complex matters related to malpractice claims, errors and omissions, securities fraud, intentional torts, death and injury, premises liability, and auto claims. She represents corporations, national product manufacturers, major automobile companies, insurance companies, lawyers, accountants, dealer-brokers, doctors, nurses, engineers, and other professionals in both state and federal courts across the state of Texas.
Zandra has first chair trial experience and has obtained numerous jury verdicts. She has defended claims asserted under The Texas Dram Shop Statute as well as state and federal trucking laws and regulations. Additionally, she defends financial professionals in FINRA actions.
Zandra Foley is a seasoned trial attorney who represents businesses and individuals in complex matters related to malpractice claims, errors …
Joel Beck founded The Beck Law Firm, LLC after a ten-year career with NASD. While at NASD, he served in various roles including six years as Regional Counsel for the Department of Enforcement in the Atlanta District Office where he prosecuted enforcement actions against broker-dealer firms and associated persons for a variety of rule violations.
Mr. Beck formed The Beck Law Firm, LLC in 2007. There, his practice primarily focuses on financial markets legal needs as he represents broker-dealers, registered investment advisers, and financial advisors in regulatory investigations and enforcement proceedings, arbitration cases, employment transition issues as well as providing advice and counsel regarding general compliance matters.
Mr. Beck blogs at his firm’s website, www.thebeckfirm.com and blogged formerly at www.BDLawBlog.com. More information can be found at the firm’s website, and on its YouTube channel at www.youtube.com/thebeckfirm.
Joel Beck founded The Beck Law Firm, LLC after a ten-year career with NASD. While at NASD, he served in …
Mr. Cosby is a partner with the law firm of Vandeventer Black LLP, and is the Department Manager of its offices in Richmond, Virginia. He has extensive experience representing Financial Services firms, including FINRA-member firms and associated persons, in private arbitration and litigation, regulatory and enforcement proceedings, and employment law. He was graduated from the Virginia Military Institute and the University of Richmond, T.C. Williams School of Law. He began his career serving as a law clerk to the Hon. Charles S. Russell, Supreme Court of Virginia. He serves as an Adjunct Professor of Law at the University of Richmond. He is an active member of the Securities and Financial Markets Association (SIFMA), Compliance and Legal Division.
Mr. Cosby is a partner with the law firm of Vandeventer Black LLP, and is the Department Manager of its …
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The Financial Industry Regulatory Authority is an independent, non-governmental regulator for all securities firms doing business with the public in the United States. FINRA works to protect investors and maintain market integrity in a public-private partnership with the Securities and Exchange Commission, while also benefiting from the SEC’s oversight. FINRA’s independent regulation plays a critical role in America’s financial system—all at no cost to taxpayers.
About Thompson Coe Cousins & Irons, L.L.P.
For more than 60 years, Thompson Coe has been recognized as a premier litigation firm and national authority on insurance law. With offices in Dallas, Austin, and Houston, Texas, Saint Paul, Minnesota and Los Angeles, California, Thompson Coe not only provides a full range of services to the insurance industry, but also offers many other client services in labor and employment, commercial litigation, premises and product liability, professional liability, mass tort, appellate, construction and commercial transactions to name a few. Clients choose Thompson Coe because the firm provides a total, integrated solution to their legal service needs. Thompson Coe operates as Thompson Coe & O'Meara, LLP in California.
About The Beck Law Firm, LLC
The Beck Law Firm, LLC is a boutique law firm in Lawrenceville, Georgia that serves clients in the area of financial markets law, business law and estate planning. In its financial markets practice, the firm represents broker-dealers, registered investment advisers, as well as financial advisors in regulatory and litigation matters, including investigations and actions brought by the U.S. Securities and Exchange Commission, FINRA and state securities regulators. The firm also provides counsel to firms and individuals in broker-dealer and RIA compliance matters, and represents industry participants in arbitration cases.
About Vandeventer Black LLP
Vandeventer Black LLP is a full-service business law firm established in 1883. The firm has long-standing strengths in commercial litigation and professional liability matters across a number of industries and businesses. Headquartered in Norfolk, Virginia, the firm’s lawyers practice from five offices located in Virginia and North Carolina, as well as an affiliated office in Hamburg, Germany. Vandeventer Black has been a firm of choice for significant legal matters for over 100 years. For more information, please visit www.vanblk.com.