November 2024 Securities Enforcement Updates
US Court of Appeals for the DC Circuit recently issued a decision in the Alpine Securities Corp. v. FINRA case, making a significant impact in the industry. The court, in a closely watched case, reversed the district court’s denial of Alpine’s request for a preliminary injunction on specific grounds, without delving into broader constitutional issues. This decision has raised questions about FINRA’s enforcement powers and potential challenges ahead.
In other news, the SEC released its enforcement results for fiscal year 2024, showcasing a record high of $8.2 billion in financial remedies from 583 enforcement actions. This resulted from disgorgement, civil penalties, and more. However, the total number of enforcement actions saw a 26% decline from the previous year, signaling a shift in focus.
Additionally, SEC Chair Gary Gensler will be stepping down in January 2025, marking a change in leadership. The SEC also charged broker-dealers for deficient SARs and an adviser for misleading statements about ESG investments. FINRA was not far behind, charging broker-dealers for trade monitoring deficiencies and incorrect reports.
The DC Circuit’s decision in the Alpine case has sparked debates about FINRA’s authority, and with ongoing changes in leadership and enforcement actions, the securities industry remains dynamic and evolving. The securities landscape continues to see shifts, and it’s crucial for industry players to stay informed and compliant with regulatory developments.
