Protecting The Bottom Line From FINRA Investigation Costs

Law360, New York (October 24, 2012, 4:14 PM EDT) -- When self-regulatory organizations (SRO), such as the Financial Industry Regulatory Authority, commence an investigation or proceeding, member firms are typically concerned with the financial impact that both the defense costs and any ultimate payment obligation will have on their bottom line.

With the United States Second Circuit Court of Appeals' decision in Fiero v. Financial Industry Regulatory Authority Inc., 660 F.3d 569 (2d Cir. 2011) that SRO fines are not judicially enforceable, member firms may be able to obtain balance sheet protection from these proceedings through insurance...
To view the full article, register now.