Study: It pays to litigate

It might pay for broker-dealer firms and registered representatives to litigate disciplinary proceedings brought against them by the SEC and Finra.
FEB 05, 2009
It might pay for broker-dealer firms and registered representatives to litigate disciplinary proceedings brought against them by the SEC and Finra, according to a study released today by Sutherland Asbill & Brennan LLP of Washington. Of the 86 charges that were litigated by the Securities and Exchange Commission and Financial Industry Regulatory Authority Inc. of Washington and New York during the SEC’s fiscal year ended Sept. 30, firms and representatives succeeded in getting charges dismissed 16% of the time, according to the study. SEC respondents had slightly more success, getting 19% of the charges dismissed. Finra respondents got 15% of the charges dismissed. Moreover, Finra respondents were more successful than in previous years, going back to January 2000. Historically, the average dismissal rate for Finra charges hovered around 11%.

Latest News

AssetMark's Talk Tracks AI gives advisors a script for client calls
AssetMark's Talk Tracks AI gives advisors a script for client calls

The new AI feature generates instant client portfolio talking points, slashing meeting prep time for advisors.

Forbes and Shook pull the plug on rankings, events, in 2026
Forbes and Shook pull the plug on rankings, events, in 2026

The Forbes rankings are highly sought after by some advisors and firms for marketing purposes.

Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition
Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition

Meanwhile, an advisor tuck-in from Edward Jones expands Kestra's Washington, D.C.-area presence, and Janney deepens its Connecticut footprint with an experienced Wells Fargo advisor.

Kovack Financial Network launches private succession platform for advisors
Kovack Financial Network launches private succession platform for advisors

KFN Succession Center pairs advisors weighing retirement with buyers, as next-gen affordability keeps eroding industry-wide.

Regulation lags rising private credit risks as retail access widens
Regulation lags rising private credit risks as retail access widens

New CFA Institute research calls for tougher valuation rules and suitability standards as private credit funds court wealth management clients.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income