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Finra is Merging its Enforcement Units -- Here’s What That Means for You

June 7, 2018

Self-regulator Finra is merging its two enforcement divisions in a bid to eliminate discrepancies in rulings, according to ThinkAdvisor.

Currently, each division has a different specialty – one for disciplinary actions on trading-based matters unearthed via market surveillance and trading examinations and one for cases referred from other Finra divisions – but over the past year the organization has been working towards merging the two units.

Susan Schroeder, who leads Finra’s enforcement team, tells ThinkAdvisor that prior to the integration the two departments had different areas of specialized knowledge, which sometimes led to different disciplinary actions. Finra has since realized the importance of consistency and predictability in completing regulatory missions, Schroeder tells the website.

The regulatory organization has also introduced a new department within enforcement called the Council to the Head of Enforcement. The new department will be involved in reviewing cases at the beginning and end to ensure consistency.


Ultimately, Schroeder insists to ThinkAdvisor that enforcement will become “more consistent and foreseeable.”

By Garrett Keyes
  • To read the ThinkAdvisor article cited in this story, click here.