The majority — 70% — of the enforcement cases brought annually by the Financial Industry Regulatory Authority are against individual brokers, with 30% levied against broker-dealers, according to Chris Kelly, Deputy Head of Enforcement.
"We've been remarkably consistent if you look back at the statistics for the last couple of years," in regards to enforcement cases, Kelly said on a recent FINRA Unscripted webcast.
In a typical year, he said, "we bring roughly 400 to 550 cases against individual brokers."
When does FINRA seek to bar a broker from the industry? For "egregious misconduct," Kelly said, usually involving fraud or conversion.
"In other words, stealing from a customer," Kelly relayed. Another violation that can commonly result in a bar is if a broker refuses to cooperate in an investigation.