Finra Focus – A periodic look at Finra disciplinary actions.

Finra disciplinary settlements sometimes leave the reader feeling sympathetic for the disciplined individual. This happens, for example, where Finra sanctions an advisor for violating a rule, but the advisor did not violate the principles underlying the rules, or cause any harm. This is common with securities rules. Many securities rules prohibit conduct that is merely associated with misconduct, but which may otherwise be entirely innocent or even commendable. As such, it can be difficult to recognize when one is violating such a rule. Examples include rules that require notice, or approval, or a record, or that certain types of procedures be in place. [Read more…]