FINRA Enforcement Actions Hits 8-Year High

The regulatory landscape for financial advisors has become more challenging than ever. In 2024, FINRA enforcement actions surged to their highest level in eight years, signaling a new wave of scrutiny that could pose threats to your career. AdvisorLaw has spent nearly a decade defending advisors against FINRA investigations, and we’re here to help you navigate this heightened enforcement environment with expertise and precision. Let’s explore what this increase means for you and how our proven defense strategies can safeguard your professional future.

A New Era Of FINRA Enforcement

According to a recent report by AdvisorHub, FINRA brought 552 enforcement actions in 2024 — that’s a 22% increase from the previous year and the first rise since 2016. This uptick reflects a broader push to crack down on perceived misconduct, driven in part by political pressure to strengthen oversight. While fines decreased slightly, the focus on restitution payments to investors — up significantly in 2024 — shows FINRA’s intent to hold advisors and firms accountable for even minor infractions.

This enforcement surge spans a wide range of issues, from improper trade reporting, to inadequate supervision of electronic communications and outside business activities (OBAs). With FINRA lowering its threshold for bringing cases, as industry experts have noted, advisors at both large firms and small practices are feeling the heat. For you, this means a greater risk of facing an investigation, even for unintentional errors or baseless complaints. The consequences can be severe: a disclosure on your BrokerCheck record, a suspension, or even a permanent bar from the industry.

The High Stakes Of FINRA Investigations

A FINRA investigation can upend your career in an instant. It often starts with a simple Rule 8210 letter requesting information, and it can quickly escalate to a formal probe, an “on-the-record” interview, or a disciplinary action. As we’ve emphasized before, every response you provide is evidence, and a single misstep can lead to a tarnished record that scares away clients and makes transitioning to a new firm nearly impossible. 

Fighting Back: AdvisorLaw's Arsenal Against FINRA Overreach

AdvisorLaw has built a reputation as the leading advocate for financial advisors facing regulatory challenges. With nearly ten years of experience and over 3,000 defense cases handled nationwide, we know what it takes to protect your career from FINRA’s aggressive enforcement tactics. 

Here’s how we can help.

• Expert Defense At Every Stage: From responding to a Rule 8210 letter, to negotiating an Acceptance, Waiver, and Consent (AWC) agreement, our attorneys provide precise, strategic guidance. We’ve successfully defended advisors against allegations ranging from OBA violations, to e-signature compliance issues — often securing dismissals or favorable settlements.
• Transition Support For RIAs: Looking to leave FINRA’s overreach and join the ranks of independent RIAs under the more reasonable SEC oversight? We provide end-to-end counsel to guide you through the transition, set up your new RIA, and ensure ongoing compliance — giving you a fresh start.

We understand the unique pressures that you face as an advisor, especially in small firms where internal support may be limited. Relying on your firm’s compliance team — or worse, going it alone — can lead to costly mistakes.

Take Control Before It’s Too Late

The 2024 enforcement surge is a clear warning: FINRA is more aggressive than it has been in nearly a decade, and advisors are in the crosshairs. Contact AdvisorLaw today for a priority consultation at no charge. Our team of enforcement defense experts is ready to fight to protect your reputation and livelihood in this increasingly-hostile regulatory environment. For more details on FINRA’s 2024 enforcement trends, check out the full report on AdvisorHub here.

Your career is worth defending — let AdvisorLaw be your advocate.