FINRA Cannot Use Courts to Collect Disciplinary Fines

October 5, 2011

In Fiero v. FINRA, No. 09-1556-cv (2d Cir. Oct. 5, 2011), the United States Court of Appeals for the Second Circuit held that FINRA and other self-regulatory organizations lack the authority to bring federal court actions to collect on their disciplinary fines. Therefore, FINRA can levy fines, but it cannot enforce collection of those fines in court.

Click here to access the court decision.


Categories

Exchange-Traded Funds (ETFs), Investment Advisers, Investment Companies, Judicial