Overview
- Two external reviewers delivered 24 recommendations to reshape FINRA’s Enforcement Program, calling for clearer governance, published procedures, and more consistent decision making by enforcement staff.
- The report asks FINRA to set limits on stale claims, proposes a roughly five-year limitation period for many matters, and recommends stronger tracking so long-running investigations end faster.
- Reviewers urged a formal way to challenge broad Rule 8210 information requests, tighter controls on on-the-record testimony, and early structured engagement so firms can contest the scope and burden of probes.
- The report calls for published enforcement guidance, clearer rules for giving cooperation credit, and guidance that settled sanctions should align with published NAC Sanction Guidelines rather than past settlements.
- FINRA has said it will consider the recommendations and signaled near-term transparency steps, but substantial changes will require rulemaking or policy action and are not yet implemented, leaving firms and counsel to use the report tactically in current matters.