Is It Your First Time Having a Client under Investigation by FINRA?

Receiving an inquiry from a regulatory agency or self-regulatory organization can make anyone nervous. Questions immediately arise as to what to do, how to respond, how to determine the reason for the investigation, and what steps to take. Using Financial Industry Regulatory Authority (FINRA) procedures as an example, we look to answer some of these questions, with an eye toward the overarching obligation of registered representatives and member firms to fully cooperate and respond to FINRA’s inquiries.