Court decision curbs FINRA's powers

The 2nd U.S. Circuit Court of Appeals in Manhattan ruled that the Financial Industry Regulatory Authority cannot sue its members to enforce disciplinary actions. The decision curtails FINRA's powers as it is pressured to ensure that its members are more accountable. "The principal issue is whether the Financial Industry Regulatory Authority Inc. has the authority to bring court actions to collect disciplinary fines," wrote Judge Ralph K. Winter Jr. "We hold that it does not."

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