The newly revised FINRA Sanction Guidelines is available and effective immediately. The changes reflect recent developments in the disciplinary process, comport with changes in FINRA’s rules, and accurately reflect the levels of sanctions imposed in FINRA disciplinary proceedings.

These revisions:

• establish a new factor requiring that the exercise of undue influence over a customer be considered for all violations addressed by the

Sanction Guidelines;

• introduce 3 new Sanction Guidelines: (i) Systemic Supervisory Failures; (ii) Short Interest Reporting; and, (iii) Borrowing From or Lending to Customers;
• present a new factor related to the mitigative effect of regulator or firm-imposed sanctions and corrective action;
• amend 12 sections of the Sanction Guidelines to revise sanctions for more serious FINRA rule violations; and,
• harmonize the Sanction Guidelines to the relevant precedent, prior amendments to the Sanction Guidelines, and FINRA’s rulebook consolidation process.

Direct your questions to:

• Alan Lawhead, Office of General Counsel, at (202) 728-8853; and,
• Jante Turner, Office of General Counsel, at (202) 728-8317.