MFDA seeks comment on sanction guidelines

The MFDA is seeking feedback from its members on proposed sanction guidelines to replace the existing penalty guidelines in effect since 2006. The sanction guidelines are not mandatory but are meant “to promote consistency, fairness and transparency by providing a framework to guide the exercise of discretion in determining sanctions in MFDA disciplinary proceedings,” the […]

By Staff | May 23, 2018 | Last updated on May 23, 2018

1 min read

The MFDA is seeking feedback from its members on proposed sanction guidelines to replace the existing penalty guidelines in effect since 2006.

The sanction guidelines are not mandatory but are meant “to promote consistency, fairness and transparency by providing a framework to guide the exercise of discretion in determining sanctions in MFDA disciplinary proceedings,” the self-regulatory organization said in its request for comment.

“The Sanction Guidelines are designed to assist MFDA staff and respondents in conducting disciplinary proceedings and in negotiating settlement agreements, as well as MFDA Hearing Panels in the fair and efficient imposition of sanctions in settled or contested disciplinary proceedings.”

Read: MFDA imposed $8.5M in fines last year

The guidelines are divided into two parts:

key factors to be considered in determining sanctions, which include deterrence, harm suffered by investors and past conduct, including prior sanctions;
types of sanctions, including fines, suspensions and permanent prohibitions.

Comments will be accepted until Aug. 20, 2018.

The request for comment and guidelines can be read here.

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