FINRA Powers Could Shrivel Under New Legal Challenge

By Ed Beeson (March 24, 2016, 10:19 PM EDT) -- The Financial Industry Regulatory Authority's oversight of the brokerage industry faces a potentially life-altering challenge as a new lawsuit claims the Wall Street-funded regulator has been enforcing securities laws that it was never given congressional authority to police.

The lawsuit brought Tuesday by Scottsdale Capital Advisors Corp. and three of its top officials asks a Maryland federal court to freeze a fast-approaching disciplinary hearing against them on the grounds that FINRA did not have legal authority to bring the enforcement action in the first place.

Specifically, the plaintiffs argue that FINRA's disciplinary powers are limited to enforcing the Securities Exchange Act...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!