A new study has been released reviewing the disciplinary actions reported by the Financial Industry Regulatory Authority in 2025, according to Financial Advisor.
The analysis by Eversheds Sutherland LLP, a global law firm specializing in financial regulation, determined that the number of disciplinary actions and the amount of restitution imposed by FINRA decreased compared to the previous year. But fines increased significantly compared to 2024, primarily due to one very large fine of $26 million assessed against one firm. Without it, 2025’s total fines were 15% less than 2024’s total fines. The largest fine assessed in 2024 was $6 million.
The conclusions were based on a review of FINRA’s monthly disciplinary reports, press releases and online database.
Eversheds Sutherland found that FINRA reported 431 disciplinary actions in 2025, down 22% from 552 the prior year, which continues a multiyear decline in case volume.
The survey noted that the Securities and Exchange Commission is expected to reduce enforcement of the industry, making it even more important for FINRA to continue enforcing Regulation Best Interest.
“With the apparent slowdown in SEC enforcement and the millions of people retiring each year, Regulation Best Interest will become an increasingly important mechanism for Finra to police retail investor harm,” wrote the firm’s researcher, Adam Pollet, in the study. “Finra’s enforcement record reflects that Reg BI is a substantive conduct standard, not a box-checking exercise, and that liability can arise from either individual actions or firm level failures.”
The number of cases with very large fines decreased in 2025. FINRA ordered 10 fines of $1 million or more in 2025, compared with 15 such fines in 2024.
Although total fines were up in 2025, the amount of restitution ordered by FINRA in 2025 was down. The authority ordered restitution of approximately $15 million, down 35% from the $23 million in 2024.
As a result, the total monetary sanctions ordered by FINRA (fines, restitution and disgorgement) in 2025 were $154 million. This represents a 77% increase from the $87 million in total sanctions ordered in 2024.
The review also listed the top five enforcement issues by total fines as follows:
(1) Anti-Money Laundering (AML: This marks the third time in the past five years that AML cases have been on the Eversheds Sutherland Top Enforcement Issues list. FINRA reported 17 cases involving AML in 2025, resulting in about $6.5 million in fines. In the largest such case, a firm was fined $1.3 million for allegedly failing to design a reasonable AML program that was tailored to its high-risk customer base.
(2) Misleading, Inaccurate or Unbalanced Communications: It is the first time in the past five years that communication issues have appeared on the top enforcement issues list. FINRA reported 12 misleading communication cases in 2025, resulting in approximately $6.5 million in fines. These cases dealt with a variety of communications, including the use of social media and communications regarding crypto assets.
(3) Trade Reporting: These cases are on the list for the sixth consecutive year. FINRA reported 35 trade reporting cases in 2025, resulting in about $5.9 million in fines. In the largest trade reporting case, a firm was fined $1.4 million for inaccurately reporting 36.6 billion order events to the Consolidated Audit Trail and failing to reasonably supervise its compliance with the CAT program.
(4) Recordkeeping: Though many of these cases involved failure to prepare net capital and customer reserve computation accurately, some of the larger fines involved failing to maintain and/or review electronic communications. In the largest recordkeeping case, the firm did not maintain a copy of social media influencers’ posts promoting the firm or records of the dates of use or retain its registered representatives’ retail communications posted by at least 70 registered representatives in an online interactive electronic forum maintained by an affiliate of the firm, which was accessible through the firm’s mobile application and website.
(5) Regulation Best Interest: FINRA reported 47 cases of these cases, resulting in total fines of $4.3 million. In one matter, FINRA found that a firm had, among other things, failed to timely deliver Form CRS to certain customers; make and preserve related records; and establish, maintain and enforce a supervisory system reasonably designed to achieve compliance with its Form CRS obligations, and fined the firm $1.6 million.
“Of the 47 cases, Finra brought 23 cases against firms, with fines totaling $4.2 million, often alleging failure to supervise Reg BI recommendations. The fines against firms ranged from $20,000 to $1.6 million,” the study said. “Finra also brought 24 cases against individuals, although the total amount of these fines was significantly lower at $140,000. Many of the cases alleged that the registered representative lacked a reasonable basis to believe their recommendations were in the retail customer’s best interest.”
The study also noted procedural reforms enacted by FINRA over the past year that are changing how enforcement investigations are conducted and how broker-dealers experience those investigations. “These reforms include a series of enhancements to FINRA’s Enforcement process designed to promote earlier engagement, greater transparency and more constructive dialogue with firms,” the study authors state. “At the outset of an investigation, FINRA will now issue Initial Notification Letters and offer introductory meetings to explain the Enforcement process and outline preliminary areas of focus.”
The attorneys at Hyman Cotter fully understand the regulatory scrutiny financial professionals and their firms face from the various regulators that oversee the financial services industry. We have decades of experience representing clients with respect to examinations, investigations and enforcement proceedings initiated by the SEC, FINRA, state securities regulatory agencies and other self-regulatory organizations. If your firm is facing an investigation from a regulatory agency, please contact us at (833) 665-0784 or through our online contact form.
