Home      Login

Regulatory Focus on “High-Risk” Registered Representatives and Recidivism  

Author:  Corin R. Swift.; Benjamin L. Nager.; Jordan S. Schwartz.

Source: Volume 52, Number 09, May 1 2019 , pp.97-104(8)

Review of Securities & Commodities Regulation

next article > |return to table of contents


Recent studies of “high-risk” registered representatives have revealed deficiencies in firm management of them, and have led to a new regulatory focus on their hiring and supervision. The authors describe FINRA’s focus on high-risk registered representatives through regulatory notices, rules, and enforcement actions. They then describe NASAA’s 2018 Enforcement Report and state enforcement actions brought against firms that failed to adequately supervise recidivist registered representatives. They close by noting steps firms must take in their supervisory plans to meet regulators’ expectations.

Keywords: FINRA Regulatory and Examination Priorities; NASAA Enforcement

Affiliations:  1: Sidley Austin LLP; 2: Sidley; 3: Sidley.

Subscribers click here to open full text in PDF.
Non-subscribers click here to purchase this article. $59

next article > |return to table of contents