Investment News quoted Washington, D.C., partner Emily Gordy in an April 25 story on how the Financial Industry Regulatory Authority (FINRA) spent $61 million in fines levied on member brokerage firms and individuals in 2018.
FINRA used the proceeds to fund technology upgrades to help monitor markets and examine member firms, Investment News reported. FINRA detailed the spending in its second annual report on fine expenditures.
Gordy, former senior vice president of FINRA’s enforcement department, said FINRA can improve its standing with brokerages, investor watchdogs and other regulators by continuing to detail how it spends proceeds from the fines.
“It’s very important for their credibility,” she said. “It's important for all stakeholders to understand where the fine money is going.”