The FINRA Board of Governors approved several proposals to increase controls and sanctions with respect to "high-risk" brokers and the firms that employ them. The proposals (i) provide for more significant sanctions against brokers with records of past misconduct, (ii) permit hearing panels to restrict firm or individual brokerage activities while a disciplinary appeal is in process, (iii) require certain mandatory BrokerCheck disclosures for firms that exceed a threshold for representatives formerly employed by disciplined firms, and (iv) amend the review process for FINRA exam waiver requests to encompass a broader consideration of individual histories of misconduct.
FINRA reported that in the near future, it intends to release a Regulatory Notice seeking comments on these proposals.
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