FINRA recently published the results of a survey of U.S. investors designed to measure perceptions of fairness and to gauge demand for additional regulatory protections. The investors surveyed made it clear they want more regulatory protections, even if it will increase costs that broker-dealers pass on to investors. Indeed, nearly three quarters of investors surveyed would support additional regulatory protections to safeguard them from misconduct by brokers or brokerage firms. Worthy of note for broker-dealers and their registered representatives is that the most important regulatory action to the surveyed investors is that brokers who break the rules are disciplined with fines, suspensions or revocation of licenses.
How the results of this survey will shape FINRA’s regulatory, compliance and enforcement agendas going forward remains to be seen. However, it will not be surprising to see a continued effort by FINRA to enhance investor protection measures and aggressively pursue its enforcement agenda to root out misconduct. It is also anticipated that FINRA will continue to aggressively scrutinize firms’ supervisory activities and compliance with internal procedures and controls designed to prevent such misconduct from occurring in the first place. FINRA’s full news release can be found here. The charts and graphs from the investor survey, as well as the underlying survey data, is available for download within the news release.
If you have concerns about a customer complaint filed with FINRA or if you have been contacted by FINRA regarding an inquiry or enforcement proceeding related to alleged misconduct, contact The Law Office of Michael A. Nagy, LLC for a free consultation.