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SEC enforcement actions decline in 2017


SEC enforcement actions initiated against investment advisors and firms dropped 16 percent in 2017 compared with the prior fiscal year, reports Financial Advisor. Monetary relief totals also fell. However, the commission returned a record $1.07 billion to harmed investors in 2017, according to its report. Read the details below. Also, a report issued by the Public Investors Arbitration Bar Association points to alleged conflicts of interest among Finra’s board members, according to Financial Planning. The report raised concerns over five of Finra’s 13 public governors, and one immediate past governor, noting that they are “tied too directly to financial services firms to represent investors’ interests,” the publication said. Read the details below.

SEC Enforcement Actions Decrease 16% in 2017

By Tracey Longo

Source: Financial Advisor

The Securities and Exchange Commission initiated 82 cases against investment advisors and firms in fiscal 2017, down from 98 the previous year. Total monetary relief ordered in 2017 also declined some 7 percent to $3.78 billion in fiscal 2017, down from $4 billion last year. Bars and suspensions from the industry decreased as well, from 650 in 2016 to 625 in 2017.



FINRA board rife with conflicts of interest, new report finds

By Ann Marsh

Source: Financial Planning

A new report by a group of securities arbitration attorneys calls into question FINRA’s ability to protect investors given alleged conflicts of interests on its board. The report was issued by the Public Investors Arbitration Bar Association, whose members represent investors in legal disputes with FINRA member firms. The group raises concerns about five of FINRA’s 13 public governors and one recently departed governor who now sits on the Federal Reserve’s Board of Governors.