Tr?id=566623520170033&ev=PageView&noscript=1

Ä¢¹½´«Ã½

FINRA Disciplinary Actions Rise for the First Time Since 2016

Posted on March 17th, 2025 at 11:51 AM
FINRA Disciplinary Actions Rise for the First Time Since 2016

From the desk of Jim Eccleston at Ä¢¹½´«Ã½

The Financial Industry Regulatory Authority (FINRA) increased its enforcement actions in 2024, marking the first rise in disciplinary cases since 2016, as reported by AdvisorHub.

FINRA initiated 552 enforcement actions last year, a 22 percent increase from 453 in 2023. The cases include settlements and complaints against individual advisors and firms, were tracked through FINRA’s disciplinary database ahead of the regulator’s official report.

Although disciplinary actions increased, total monetary sanctions declined. FINRA imposed $87 million in penalties last year, down 14 percent from $101 million in 2023. Fines dropped 35 percent to $59 million, largely due to the absence of a major penalty like the $24 million fine against Bank of America Securities in 2023.

However, restitution payments surged 207 percent year-over-year to $23 million. This increase was driven by a December enforcement action against Edward Jones, Osaic Ä¢¹½´«Ã½alth, and Cambridge Investment Research, according to AdvisorHub. The firms were ordered to pay a combined $8.2 million in restitution to customers who were improperly charged commissions on mutual fund sales.

AdvisorHub reports that FINRA’s enforcement activity has remained strong into 2025. In one of its first major settlements of the year, two units of Robinhood Markets Inc. agreed to pay $26 million to settle allegations that they failed to respond to red flags about potential misconduct and did not verify the identities of thousands of customers.

 

Ä¢¹½´«Ã½ LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I have the best legal firm in the country to defend me. Awesome job!

Cindy C.

LATEST NEWS AND ARTICLES

1786734880 Law
August 14, 2026
Cash Sweep Litigation Continues to Drive Legal Costs

Cash sweep litigation continues to increase legal costs for wealth management firms despite the Securities and Exchange Commission's (SEC) decision under the Trump administration to close pending investigations without imposing enforcement penalties, according to AdvisorHub.

1786636784 Law
August 13, 2026
FINRA Orders Centaurus Financial to Pay $1.1 Million Over Variable Annuity Supervision Failures

The Financial Industry Regulatory Authority (FINRA) has ordered Centaurus Financial Inc.

1786553985 Law
August 12, 2026
Proposed FINRA Enforcement Reforms Draw Mixed Reactions From Industry Participants

A new report recommending changes to the Financial Industry Regulatory Authority's (FINRA) enforcement program has generated mixed reactions from investor advocates, securities attorneys and industry professionals, according to ThinkAdvisor.