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- State Street Challenging BNY Mellon As Largest Custody Bank
- Changes to FINRA Advisory Committees: Phase 1
- SEC Approves CAT Fee Dispute Resolution Process
- Boston-Area Consultant & Friend Settle SEC Insider Trading Charges
- SEC Chair Clayton: Statement on Status of the Consolidated Audit Trail ('CAT')
- Goldman to Launch $5bn Fund with China Investment Corp.
- Wells Fargo Launches Robo-Adviser Targeting Millenial Investors
- Barclays Fails to End U.S. 'Dark Pool' Class Action
- Goldman Sachs' Chief Risk Officer, Craig Broderick, to Retire
- Time to Renew FINRA Registrations - B/D, IA, Agent, IA Rep, Branches
- New Jersey’s Next Governor Could Be a Democrat Who Worked at Goldman Sachs
- FINRA New York Region Networking Seminar - December 1st
- SEC Approves “Pay-to-Play” and Related Rules for Capital Acquisition Brokers
- Hedge Fund Giant Paul Singer Targeted for Destruction by Steve Bannon
- Saudi Arabia's arrest of Prince Alwaleed 'would be like arresting Warren Buffett or Bill Gates' in the US
- Arrest of Billionaire Saudi Prince Touches Sizable Stakes - Citigroup, Twitter, Lyft
- New York Fed President William Dudley set to announce retirement
- FINRA Arbitration Panel Rules Against ex-LPL Broker in $30Mn Lawsuit vs. Firm
- OOPS! Goldman, JPMorgan, BofA Fail in Pricing an IPO
- Former Merrill Broker Pleads Guilty to Fee Fraud, Faces Up To 25 Years
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NEWSLETTERS & ALERTS
FINRA: Higher Fines Offset Lower Operating Revenues in 2016
by Howard Haykin
FINRA reported improved financial results for 2016, earning nearly $100 million more in net income that it did the prior year. For 2016, FINRA had net income of $57.7 million on more than $1 billion in net revenues; in 2015, FINRA had lost $40 million on net revenues of $993 million in 2015.
To achieve those results, FINRA had to rely, in large part, on regulatory fines. In 2016, fines rose by $80 million to $174 million - while operating revenues declined by $54 million to $845 million. Interestingly enough, the number of monetary sanctions decreased about 10% to 624 in 2016, from 691 in 2015. FINRA also reported a $70 million swing in investment income.
- 785 cases referred for prosecution to the SEC and other federal or state law enforcement agencies
- 439 potential market manipulation cases referred to the SEC
- 97 potential Reg M violations detected by cross-market patterns referred to the SEC
- More than 5,550 exams conducted in 2016
- $174 million in fines
- $28 million in restitution to harmed investors
- 24 firms expelled, 727 brokers suspended, 517 brokers barred, 1,434 disciplinary actions
FINRA recognizes fines upon issuance of a written consent or disciplinary decision. We do not view fines as part of our operating revenues. The use of fine monies is limited to capital expenditures and regulatory projects, such as our efforts to leverage technology innovations and the Cloud initiative, and other projects as appropriate, which are reported to and approved by our Finance, Operations and Technology Committee and Board.