Study: It pays to litigate
It might pay for broker-dealer firms and registered representatives to litigate disciplinary proceedings brought against them by the SEC and Finra.
It might pay for broker-dealer firms and registered representatives to litigate disciplinary proceedings brought against them by the SEC and Finra, according to a study released today by Sutherland Asbill & Brennan LLP of Washington.
Of the 86 charges that were litigated by the Securities and Exchange Commission and Financial Industry Regulatory Authority Inc. of Washington and New York during the SEC’s fiscal year ended Sept. 30, firms and representatives succeeded in getting charges dismissed 16% of the time, according to the study.
SEC respondents had slightly more success, getting 19% of the charges dismissed. Finra respondents got 15% of the charges dismissed. Moreover, Finra respondents were more successful than in previous years, going back to January 2000. Historically, the average dismissal rate for Finra charges hovered around 11%.
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