Self-regulator Finra is providing details on how it spent the $65 million it collected in fines in 2017 — a first for the industry organization, according to ThinkAdvisor.
Overall, the money went toward initiatives promoting efficiency and effectiveness of oversight, investor education, improving and promoting member-firm compliance, ensuring that Finra’s employees are well trained and “capital/initiatives that are required by new legal, regulatory or audit requirements,” the regulator says, according to the publication.
More specifically, Finra said it spent $8.1 million on exams and risk monitoring management, $7.9 million on market surveillance and $7.3 million on analytics tools targeting examinations, ThinkAdvisor writes. A further $6.6 million was spent on programs to facilitate compliance with the regulator’s rules as well as federal securities laws, while $6.2 million went toward trade reporting for Treasury securities, according to the publication. Finra also spent $6.2 million on case management and $5 million to train its staff on markets, products and businesses under its purview, ThinkAdvisor writes.
In addition, the regulator allocated $4.8 million toward registration and testing as well as continuing education systems and $4.5 million toward investor education, according to the publication. The rest of the money was spent on detecting fraud and other misconduct, trade transparency initiatives, a pilot program for small-cap trading, improvements to the electronic filing program used by member firms for submitting documents for Finra review, and on administering the regulator’s dispute resolution program, ThinkAdvisor writes.
Meanwhile, the $65 million Finra collected in fines in 2017 was a steep drop from 2016, when the regulator collected $174 million, according to the publication.