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Here’s How Finra Spent Fines in 2017

July 3, 2018

Self-regulator Finra is providing details on how it spent the $65 million it collected in fines in 2017 — a first for the industry organization, according to ThinkAdvisor.

Overall, the money went toward initiatives promoting efficiency and effectiveness of oversight, investor education, improving and promoting member-firm compliance, ensuring that Finra’s employees are well trained and “capital/initiatives that are required by new legal, regulatory or audit requirements,” the regulator says, according to the publication.

More specifically, Finra said it spent $8.1 million on exams and risk monitoring management, $7.9 million on market surveillance and $7.3 million on analytics tools targeting examinations, ThinkAdvisor writes. A further $6.6 million was spent on programs to facilitate compliance with the regulator’s rules as well as federal securities laws, while $6.2 million went toward trade reporting for Treasury securities, according to the publication. Finra also spent $6.2 million on case management and $5 million to train its staff on markets, products and businesses under its purview, ThinkAdvisor writes.

In addition, the regulator allocated $4.8 million toward registration and testing as well as continuing education systems and $4.5 million toward investor education, according to the publication. The rest of the money was spent on detecting fraud and other misconduct, trade transparency initiatives, a pilot program for small-cap trading, improvements to the electronic filing program used by member firms for submitting documents for Finra review, and on administering the regulator’s dispute resolution program, ThinkAdvisor writes.

Finra

Meanwhile, the $65 million Finra collected in fines in 2017 was a steep drop from 2016, when the regulator collected $174 million, according to the publication.

By Alex Padalka
  • To read the ThinkAdvisor article cited in this story, click here.