FINRA Chief Warns of Enforcement Action

The Bond Buyer reports:

The Financial Industry Regulatory Authority’s top official warned Monday that FINRA will be taking enforcement action against firms for excessive entertainment of rating agencies to influence muni bond ratings and issuers. Sanctions also will be issued against firms using bond proceeds to make payments to political action committees. In addition, false reporting of issuer payments to firms or individuals who were supposed to be involved in muni transactions will be sanctioned.

“These issues raise serious noncompliance and a breach of ethics that we are continuing to investigate,” Rick Ketchum, FINRA’s chairman and chief executive officer, said at the self-regulator’s fixed income conference in New York City.

You've been warned.