FINRA Investigations and Sanctions

What this video covers

• Why failure to cooperate with a Financial Industry Regulatory Authority (FINRA) investigation is itself a barrable violation, separate from any underlying misconduct
• The exact sanction ladder from censure through expulsion, and when restitution to the customer enters the escalation sequence
• The distinction between a bar (for individuals) and expulsion (for firms), and which violation severity triggers each
• The seven-day unpaid-fine rule: when written notice expires and FINRA may summarily suspend or expel a member, or revoke an associated person's registration
• Why the two-year suspension threshold is a guideline recommendation toward a bar, not an absolute legal cap, and how the exam tests this distinction
• What a Letter of Acceptance, Waiver and Consent (AWC) settles, what rights the respondent waives, and why AWCs still appear publicly on BrokerCheck
• The exact appeal hierarchy for contested cases: Office of Hearing Officers (OHO), then National Adjudicatory Council (NAC), then Securities and Exchange Commission (SEC), then federal courts