In May 2015, FINRA issued revisions to its Sanction Guidelines.

In particular, the amended Sanction Guidelines encourage individual bars and firm expulsions as to:

  • violations involving fraud, misrepresentations, or material omissions of fact; and
  • violations of FINRA’s suitability rules.

Currently, broker-dealers who offer structured products continue to be examined by FINRA for compliance with applicable rules. Accordingly, the new guidelines increase the importance of maintaining proper compliance practices and procedures.