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Stories of Interest
- North Korean caught secretly mining bitcoin rival
- IPO Timelines Cut by 80% After SEC's Private Filing Decision
- How the Carried Interest Break Survived the Tax Bill
- FINRA: The Neutral Corner
- Coinbasex Says Buying and Selling Temporarily Disabled Amid Price Rout
- Bitcoin plunges by more than a third in a single day
- Goldman Is Setting Up a Cryptocurrency Trading Desk
- Jefferies Lets Employees Choose When to Receive Their Bonuses
- UBS Told to Pay $903K After Losing Retaliation Verdict
- BEWARE: Long Island Iced Tea Shares Soar After Changing Name to Long Blockchain
- Gary Cohn’s Last Laugh: Cashing Out on Trump’s Tax Plan
- E*Trade Lets Customers Trade in CBOE Bitcoin Futures
- Swiss Find Serious Shortcomings at JPMorgan in 1MDB Case
- Washington-based Investment Adviser and His Business Partner Charged in Multi-Million Dollar Scheme
- FINRA Board of Governors Meeting
- Cryptocurrency Market Now Doing Same Daily Volume as the NYSE
- Jailed Barclays Trader Must Pay $400,000 From Libor Profits
- Trump Asks ‘How’s Your 401(k)?’ But Most Voters Don’t Have One
- A Bitcoin Hedge Fund’s Return: 25,004% (That Wasn’t a Typo)
- Madoff Victims Near Full Recovery of Principal With Payout
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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.