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Everything You Need to Know About FINRA Investigations


December 9, 2020 ( Newswire) If you work in one of America's financial markets, then you are probably aware of or at least heard about FINRA. However, if you've recently received a letter asking for specific documents, you're understandably going to be a little stressed about what is going to happen next. It can certainly be intimidating, but you should try your best to remain calm.

In this article, we are going to discuss everything you need to know about FINRA investigations. Interested? Then let's get started.

How do I prepare myself?

Once you've received your letter, read through everything to confirm what is being requested. You don't want to do anything yet without going through the correct steps and understanding what is going on. It's also extremely important to check out the top FINRA lawyers as early as possible, especially if you are not aware of the reason for the request. They will be able to assist in a variety of ways, including responding and advocating in disciplinary hearings

What is FINRA?

FINRA, also known as The Financial Industry Regulatory Authority, is a nongovernmental organization that enforces rules for brokers and broker-dealer firms. They assist investors with financial protection to ensure they are being treated fairly and aren't at risk of fraud. Alongside this, they also administer qualifying exams for securities professionals who wish to sell securities or supervise others who do.

Why are you under investigation?

There are several reasons why you may be under investigation by FINRA. It could be a complaint filed by a former employer or a customer complaint that was filed directly with FINRA that you never even knew about. It may even be from an automated surveillance report. It can be overwhelming to receive the information request, but it's important to stay level-headed.

Do I need to cooperate?

You are required by law to cooperate in any FINRA investigation, so while you might be tempted to act like you never received the letter, it's essential to reply. In most cases, a time frame will be allocated in which your lawyer will notify you about. Failure to respond to this could result in a ban from the industry.

How long will this investigation take?

There is no exact length of a FINRA investigation, so be prepared to do quite a bit of waiting after you have responded to your initial request. You may hear back in a few weeks asking for an interview or additional documents or will hear back several months later in which nothing further will happen. It all takes time, so continue as normal until you receive information from your attorney.

While the entire investigation can seem very daunting, it's important to remember that it will be ok. You just need to be prepared, answer everything truthfully, and provide them with the necessary documents in a timely manner. Once you are contacted, you can then move on with what will happen next. This could be disciplinary action, or as mentioned above, nothing.

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