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The Financial Industry Regulatory Authority is zeroing in on registered reps' use of Paycheck Protection Program loans.
"FINRA is proactively looking at registered representatives that obtained loans through undisclosed outside business activities," a spokesperson said Monday in a statement shared with ThinkAdvisor. "It is core to FINRA's mission to detect, deter and investigate potential fraud."
The spokesperson also stated that FINRA is not targeting such loans via examination letters.
The Wall Street Journal and Bloomberg reported last year that JPMorgan and Wells Fargo had terminated their registered reps for inappropriately taking PPP loans and/or taking PPP loans through undisclosed outside business activities.
