“FINRA is to be applauded for an unprecedented level of transparency into its budgeting process and financial challenges,” Brad Bennett, former FINRA enforcement chief who’s now a partner at Baker Botts in Washington, told ThinkAdvisor.
“The 2018 budget underscores the magnitude of the operational hurdles faced by FINRA and the need for significant belt tightening,” Bennett adds, pointing to the $136 million in reserves that FINRA is “committed to spend to make up for the revenue shortfall.”
The self-regulator’s 2018 budget “sends a clear signal that FINRA intends to wean itself off of its reliance on enforcement fines to bring its revenues in line with its expenses,” Bennett said.
‘Enforcement 40’ for 2020
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