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June 25, 2021 at 12:23 PM
What You Need to Know
- FINRA performed 5,623 exams and reviews last year.
- Total fines increased by $17.5 million in 2020 to $57 million.
- CEO Robert Cook’s total compensation in 2020 was $3.12 million.
Fines issued by the Financial Industry Regulatory Authority soared, with some executives also seeing a bump in pay in 2020, according to the broker-dealer self-regulator’s annual financial report, released Friday.
The total amount of fines increased by $17.5 million in 2020 to $57 million, versus $39.5 million in 2019.
According to its 2020 Annual Financial Report, FINRA reported net income of $19.8 million in 2020 versus a net loss of $45.9 million in 2019, an increase of $65.7 million year over year.
“Our 2020 net income was driven by operating income of $30.9 million, offset by other expenses, net of investment gains, of $11.1 million,” said FINRA CEO Robert Cook.
“Higher operating income for the year reflected increased revenues, due primarily to higher trading volumes and a large number of public offerings, partially offset by an increase in operating expenses and lower interest and dividend income,” Cook reported.
FINRA stated that its balance sheet “remains strong,” with the regulator having $1.5 billion in equity as of December 2020.
FINRA also reported that it performed 5,623 exams and reviews last year; issued $25.2 million in restitution to harmed investors; expelled two firms; suspended 375 brokers and barred 246.
