The Financial Industry Regulatory Authority, through the National Adjudicatory Council (NAC), has revised the FINRA Sanction Guidelines that hearing panels and the NAC use in determining appropriate remedial sanctions for FINRA members in disciplinary proceedings. Among other changes, the revised Sanction Guidelines include the following additions:

  • three new guidelines: Supervision—Systemic Supervisory Failures, Borrowing From or Lending to Customers and Short Interest Reporting;
  • a new general principle examining the mitigating effects of regulatory or firm-imposed sanctions and corrective action;
  • a new factor considering whether a respondent has exercised undue influence over a customer;
  • revised sanctions for more serious FINRA rule violations; and
  • other conforming changes.

The new guidelines were effective immediately upon publication. More details are available in FINRA Regulatory Notice 17-13.