Elizabeth Warren Questions FINRA's Enforcement Decline: Key Considerations for Companies

On August 29, 2024, Senator Elizabeth Warren raised concerns regarding a sharp decline in enforcement actions by the Financial Industry Regulatory Authority (FINRA). In a letter to FINRA CEO Robert Cook, Warren questioned whether this drop reflects a deliberate shift in regulatory strategy. The number of enforcement actions last year was the lowest since FINRA’s inception in 2007, and fines have similarly decreased. Warren’s inquiry highlights potential implications for both FINRA’s oversight and the broader regulatory landscape.