2nd Circ. Says FINRA Can't Bring Fine Collection Actions

Law360, New York (October 5, 2011, 3:37 PM EDT) -- The Second Circuit ruled Wednesday that the Financial Industry Regulatory Authority lacks the authority to bring court actions to collect on disciplinary fines, ending a long-running fight between the organization and a New York broker-dealer.

Attorneys for plaintiff John Fiero — whose firm Fiero Brothers Inc. was fined $1 million for allegedly executing a "bear raid" of short-selling in order to manipulate the price of certain securities — had argued that the Securities Exchange Act does not grant FINRA or its predecessor, the National Association of Securities...
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