FINRA loses fight over fines

By Staff | October 5, 2011 | Last updated on October 5, 2011
1 min read

American advisors may have just been handed an excuse not to pay disciplinary fines to the Financial Industry Regulatory Authority (FINRA).

A federal court of appeal has found that the regulator does not have the authority to bring court actions to collect disciplinary fines levied against members.

The decision overruled a New York state court ruling which ordered the broker to pay more than $1.3 million in fines to the FINRA. The broker appealed on the grounds that a state court did not have jurisdiction in the matter.

You might want to think twice before opting out of paying any fines in Canada though. In 2009 the Ontario Court of Appeal ruled that IIROC could levy penalties against brokers who were no longer in the industry. staff


The staff of have been covering news for financial advisors since 1998.