FINRA's Enforcement Authority Challenged In Brokerage's Suit

By Ed Beeson (March 23, 2016, 4:10 PM EDT) -- The Financial Industry Regulatory Authority's broad interpretation of its enforcement authority has come under fire in a new lawsuit, as an Arizona-based broker-dealer and three of its top officials have sued to block the Wall Street regulator from continuing a disciplinary action against them that they say falls far outside its ambit.

In a complaint filed Tuesday in Maryland federal court, Scottsdale Capital Advisors Corp. and its officials have asked for a preliminary injunction against FINRA to stop it from proceeding to a June hearing over an enforcement action it brought against the firm over sales of unregistered penny stocks....

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