Following its year-and-a-half long self-evaluation, Finra has completed revamping its enforcement unit, merging functions between two separate departments, according to a press release from the industry’s self-regulator.
Finra’s enforcement unit was previously split into two teams: one dedicated to disciplinary actions in trading matters and the other to cases referred to it from other divisions, including member regulation, corporate financing, the office of fraud detection and market intelligence and advertising regulation, Finra says.
Now, the department will function as one entity, including a unified team of investigators who will work on a broad range of cases brought to the unit and a new Office of the Counsel to the Head of Enforcement, according to the press release.
The investigators unit will be led by Terrence Bohan, who’s joining Finra Aug. 13 as vice president of investigation after 23 years at the SEC’s New York regional office, where he most recently oversaw its broker-dealer examinations, Finra says.
The Office of the Counsel, staffed by lawyers and supporting staff, will be led by senior vice president Lara Thyagarajan, according to the press release.
Thyagarajan, who had been a partner in private practice and represented broker-dealers in investigations by regulators, joined Finra’s enforcement division in 2006, the regulator says. A further 150 attorneys will be divided between three teams: main enforcement, sales practice enforcement and market regulation enforcement, according to Finra.
The restructuring of the enforcement unit began when Susan Schroeder was promoted to head of enforcement in July 2017 and is one of the main outcomes of Finra 360, the self-evaluation program Finra undertook in early 2017, the regulator says. Consolidating the enforcement unit and centralizing its functions is aimed at “more consistent decision-making and outcomes,” according to Finra.
“We have purposefully chosen this senior leadership team to enhance the consistency of outcomes of our enforcement actions, and to ensure transparency of our enforcement processes,” Schroeder says in the press release.