Here’s How FINRA Spent Its 2021 Fine Money

 Commentary  June 30, 2022 at 07:44 AM  Share & Print


What You Need to Know

  • FINRA issued $90.1 million in fines in 2021, a big jump from the $57 million levied in 2020

  • Some of the fine money was used to enhanced BrokerCheck, the Fund Analyzer and to create new, virtual events.

The Financial Industry Regulatory Authority issued $90.1 million in fines in 2021, a significant jump from the $57 million levied in 2020.

The broker-dealer self-regulator allocated $9 million to enhance the tools and systems used for exams, investigations and disciplinary programs, it said in a report.

In 2021, FINRA invested $11.4 million to modernize and enhance the systems and tools supporting enforcement investigations and disposition processes.

FINRA also invested $6.3 million to enhance the technology that supports the platform FINRA examiners and risk monitoring analysts use to manage their work efficiently.

Last year, FINRA invested $11.8 million in a multi-year initiative to integrate and implement the Consolidated Audit Trail (CAT) data into its surveillance and CAT compliance programs.

The initiative is expected to be completed in 2022.

FINRA is required to report certain data to the CAT, which is the Securities and Exchange Commission-mandated central repository of trades, quotes and orders for all U.S. exchange-listed and over-the-counter equity securities and U.S. exchange-listed options contracts across all U.S. markets and trading venues.

Another $3.9 million was invested in various investor education programs. In 2021, FINRA enhanced BrokerCheck, the Fund Analyzer and other tools and created new, virtual events.

European Compliance Association