Churning is a serious offense and, if proven, can lead to employment termination, barring from the industry, and legal ramifications. In addition, FINRA may impose a fine ranging from $5,000 to $116,000. FINRA also has the right to suspend the broker for anywhere from one month to two years. In more egregious cases, FINRA can suspend the violator for a longer period or even bar the broker indefinitely.
Comments