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FINRA Signals Stronger Enforcement Focus on Reg BI, Excessive Trading, and Best Execution

Posted on June 30th, 2026 at 12:23 PM
FINRA Signals Stronger Enforcement Focus on Reg BI, Excessive Trading, and Best Execution

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

The Financial Industry Regulatory Authority (FINRA) plans to intensify its enforcement efforts against Regulation Best Interest (Reg BI) violations, excessive trading, options trading, churning, and best execution failures after bringing a record number of retail investor protection cases in 2025, according to ThinkAdvisor.

FINRA officials announced the heightened enforcement focus during the regulator's annual conference while discussing a comprehensive review of its enforcement program that is expected to conclude by July 1. As ThinkAdvisor reports, FINRA plans to release a public report outlining potential reforms and intends to develop a public enforcement manual similar to the one used by the SEC.

FINRA also continues to prioritize enforcement matters involving market integrity, operational risk, and repeat offenders with significant disciplinary histories. According to ThinkAdvisor, Matthew Minerva, Vice President and Chief Counsel in FINRA's Department of Enforcement, identified pump-and-dump schemes involving small-cap issuers as an ongoing concern because retail investors frequently suffer substantial losses after inflated stock prices collapse.

The regulator also plans to continue investigating small-cap initial public offerings involving foreign-based issuers and underwriters as part of an ongoing regulatory initiative, ThinkAdvisor reports.

At the same time, FINRA officials emphasized a more collaborative approach to enforcement. According to ThinkAdvisor, the regulator has implemented procedural reforms that include introductory meetings with firms, investigative findings conferences, and expanded opportunities for firms to respond before FINRA issues cautionary action letters or requests for information.

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

Tags: eccleston, eccleston law, finra enforcement, regulation best interest, excessive trading, best execution, securities regulation

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