(Image: Shutterstock)
The Financial Industry Regulatory Authority is pressing ahead with its crackdown on brokers with a pattern of misconduct and the broker-dealers that hire them.
The broker-dealer regulator has filed with the Securities and Exchange Commission for approval of a multi-pronged plan to clamp down on "the risk of potential customer harm that may persist where a firm or broker has a significant history of past misconduct."
A separate Regulatory Notice 19-17, which addressed firms with a significant history of misconduct, was approved for filing with the SEC at FINRA's December board meeting.
FINRA's plan would allow a hearing officer to impose conditions or restrictions on the activities of a respondent member firm or respondent broker, and require a respondent broker's member firm to adopt heightened supervisory procedures for such broker, when a disciplinary matter is appealed to the National Adjudicatory Council or called for NAC review.
