Situations arise that can trigger regulatory inquiries or investigations from state, federal, of self-regulatory organizations. These regulatory inquiries or investigation are typically caused when allegations are raised that an industry member committed some type wrongdoing in connection with investment sales practices or conduct. These allegations can be made by a customer through a formal or informal complaint. Or, they can be made by a current or former employer who, through its own investigation, alleges or concludes that the industry member engaged in misconduct.
The severity of the allegations generally dictate the level of regulatory scrutiny that follows. These investigations and inquiries can range from a simple response to a written request from a regulatory body (such as FINRA, the SEC, or a state securities department) for a statement from the industry member concerning an allegations, to a formal on-the-record proceeding where the industry member is examined by a regulatory lawyer.
Regulatory issues can lead to a host of potentially negative consequences for the industry member including, but no limited to, fines, suspensions, affirmative findings of misconduct, and a loss of licensure.
With the stakes sky high, and their careers potentially in the balance, industry members should seek the advice of experienced counsel to help them navigate the pitfalls associated with regulatory scrutiny. PRM P.C. regularly defends the interests of industry members through these regulatory proceedings to seek a just result for his clients.