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ARTICLE · 26 AUGUST 2026

FINRA Enforcement Review Calls For Major Reforms

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FINRA recently published an external review recommending sweeping reforms to its Enforcement program that could fundamentally reshape how broker-dealers navigate regulatory investigations. The proposed changes include new limitations on Rule 8210 information requests, enhanced Wells procedures with earlier engagement opportunities, formal statute of limitations periods, and expanded cooperation credit for firms that demonstrate proactive compliance efforts.

United StatesFinance and Banking
Joshua Klein
Joshua Klein
Russell W. Gallaro
Russell W. Gallaro

What to Know

  • FINRA published an external review recommending broad changes to its Enforcement program.
  • If adopted, the recommendations would have a significant impact for broker-dealers and other respondents in FINRA investigations and enforcement actions.
  • Among the most consequential proposals are new checks on Rule 8210 requests, a more robust Wells process, formal limitations periods for disciplinary actions, and improved credit for cooperation and remediation efforts.

FINRA recently published a report prepared by two outside experts – former SEC Commissioner Troy A. Paredes and Professor Paul R. Eckert of William & Mary Law School – containing recommendations intended to improve FINRA’s Enforcement function. FINRA commissioned the review as part of its FINRA Forward initiative and has said that it is “committed to drawing on these recommendations” as it continues to revise its Enforcement program.

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