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FINRA completes broker examination and refers case to Enforcement Department

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Mar 15, 2010 10:33 pm

This review was the result of Rule 3070 filing.  Dispute was settled amiacably with client with return of commissions.  This was two years ago.  I accepted a five day suspension from the firm with a letter of reprimand as discilplinary action.  FINRA has been reviewing since then with their recent referral to the Enforcement Dept.  My attorney thought they would end the exam with a letter of admonition from the review team.  Does the refferal to the Enforcement Department automatically mean formal discipline is coming or is informal discipline still an option?


Mar 16, 2010 11:47 pm

To clarify, the customer complaint was filed in a timely fashion with my firm and the firm's compliance department.  The firm's legal counsel assisted me throughout the investigation and negotiation with the client's counsel.  The firm settled with the client and imposed a five day suspension and a letter of reprimand to me.  I did not contribute toward the settlement.  The complaint had been reported to FINRA on a timely basis and the appropriate changes were noted on my U4.  Appoximately three months later FINRA informed me they were doing a review as a result of the filing of the complaint.  This has been going on for about eight months.  The FINRA staff notified me they have completed their review and referred it to the Enformcement Department.  I was told that an informal discipline would be a letter of admonition and formal discipline would incur possible fines, suspension, etc.  Hope that helps.

Mar 17, 2010 11:11 pm

I just want to make sure I understand your comments correctly.  The Staff could have dropped the matter but since they didn't, it is likely the Staff feels some sort of discipline is warranted.  The Enforcement Dept. will review the Staff's findings and more than likely will issue some type of discipline, which could be a Letter of Admonition or fine and suspension.  Do I understand your comments correctly?