The Financial Industry Regulatory Authority says it had a tremendous 2010 - and who are we to disagree(?) - significantly expanding and enhancing its investor protection and market regulation capabilities.  And, just to prove it, here are some key FINRA statistics and highlights for 2010 - courtesy of FINRA.

    2010 Statistics.   During the year, FINRA conducted sweeps and targeted exams involving  Reg. D offerings, placement agents, trading activity fees, direct market access and junk bonds, and perhaps others.  Through 11/30, FINRA has conducted about 2,600 cycle exams and 6,600 cause exams. Thus far this year, approximately 5,242 cases were filed in arbitration (21% drop from 2009), and 788 cases commenced in mediation (51% increase).

    2010 Highlights.  

    1.  Expanded market oversight responsibilities ... to include 11 new markets, particularly through the NYSE EuroNext group.  FINRA's now responsible for surveilling 80% of U.S equity trading volume.

    2.  Launched the Office of Fraud Detection and Market Intelligence (OFDMI), ... including the Office of the Whistleblower.  In 2010, OFDMI referred over 500 matters to the SEC or others, involving insider trading, microcap fraud, Ponzi schemes, among others.  This includes 244 insider trading referrals to the SEC, highest in FINRA's history.  The Insider Trading Surveillance unit continues to refine its analytics to identify concealed serial insider trading rings.

    3.  Brought 1,173 disciplinary actions and levied fines totaling $41.1 million.  FINRA also ordered almost $8 million in restitution to investors, expelled 14 firms, barred 270 individuals and suspended 407 individuals.

    4.  Further strengthened executive leadership, ... naming J. Bradley Bennett as head of FINRA's Enforcement Division and Samuel Gaer as CIO, and by promoting Susan Axelrod to lead Member Regulatory Sales Practice.

    5.  Enhanced market transparency by expanding the TRACE ... to include debt issued by federal government agencies, government corporations and government-sponsored enterprises, as well as primary market transactions in eligible debt issues - a 50% increase in the number of reportable debt instruments through TRACE.  Nextm TRACE will be expanding to include securitized products, which will add more than 1.2 million (ABS and MBS) securities to the current 45,000 TRACE-eligible securities.  The rules for reporting transaction information in securitized products become effective in May 2011.

    6.  Completed first major expansion of BrokerCheck since 2002, ... enabling investors to access more information, including historic complaints, on current and former brokers.  Records on former brokers are now available for 10 years, instead of just 2 years after they leave the securities industry.  Records of regulatory actions, criminal convictions, civil judgments and arbitration awards are permanently available.  The results in detailed information for nearly 1.35 million current and former securities brokers - a 65% increase. 

    7.  The FINRA Investor Education Foundation released ... the nation's first Military Financial Capability Survey, and it launched an interactive Web resource to display the results of America's first State-by-State Financial Capability Survey, which surveyed more than 28,000 respondents.  The new website, www.usfinancialcapability.org, displays a clickable map of the United States and allows the public, policymakers and researchers to delve into and compare the financial capabilities of Americans in every state and across geographic regions.

For further details, click onto:   [FINRA News Release, 12/20]