How should I respond to a FINRA or SEC enforcement inquiry letter?

If you ever find yourself under FINRA or SEC investigation, or in receipt of a FINRA Rule 8210 request, there are a number of important steps to follow to avoid being hit with a negative disclosure. Not only do you have to cooperate, but you also have to provide concise and succinct answers.

On this week’s Ask An AdLaw Expert, we’re talking about how to proceed if you’ve been hit with an inquiry letter from a regulator.

Investigations from financial industry enforcement demand responses that are precise. Every word is evidence.

If you are in receipt of an enforcement action, call us right now at (303) 952-4025 or fill out the form below to talk with an attorney and receive a priority consultation at no charge.

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You should respond to an inquiry letter with concise and succinct answers. You really should only be answering the call of the question itself and nothing more. Think about it like a deposition question, you don’t want to give too much information or anything irrelevant, because it could come back to haunt you. Now it is important that you cooperate with the investigation and that you’re truthful and stick with the same narrative throughout. Not cooperating will get you permanently barred from the industry. So it is in your best interest to respond unless you’re ready to walk away from the financial services industry forever. The inquiry letter itself is not a reportable offense. You actually will not be hit with a disclosure at all, up until FINRA files a complaint against you. So having the inquiry handled by expert counsel can avoid a disclosure altogether, if it’s handled appropriately.