05.14.26

FINRA Intensifies Enforcement Focus on Reg BI, Best Execution

by: Tracey Longo

The Financial Industry Regulatory Authority (FINRA) is intensifying enforcement efforts targeting Regulation Best Interest (Reg BI), excessive trading and best execution failures, especially cases involving retail and senior investors. At the same time, FINRA is reviewing its enforcement program and plans to release reform recommendations and a public enforcement manual by July 1. At FINRA's annual conference, officials said they are shifting focus toward cases involving clear investor harm, fraud and market integrity rather than technical violations. FINRA also emphasized a more collaborative approach, offering firms greater transparency, opportunities to respond early and potential leniency for self-reporting and rapid remediation.

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