The Financial Industry Regulatory Authority reports that it ordered US$19 million in restitution to harmed investors in 2011.

FINRA says that, year-to-date, it has brought 1,411 disciplinary actions against registered individuals and firms, levied fines totaling more than US$63 million and ordered more than US$19 million in restitution to harmed investors. In addition, FINRA expelled 17 firms from the securities industry, barred 317 individuals, and suspended 432 brokers from association with FINRA-regulated firms. All of these numbers are an increase from 2010, the SRO notes.

Additionally, it referred more than 600 matters involving potential fraudulent conduct to federal and state regulators and law enforcement agencies.

During the year, approximately 4,378 cases were taken to arbitration and 640 cases started mediation, it reports. The most common issues in cases filed for arbitration were breach of fiduciary duty, negligence and misrepresentation.

FINRA says that it has realigned its resources to quickly escalate issues involving fraud and customer harm, and has thereby improved its ability to take swift action in these sorts of cases to protect investors. It notes it reconfigured its examination program to be more risk-based and to ensure that its exam teams are more focused on areas that are critical to investor safety.

“Our top priority is to protect investors,” said Richard Ketchum, FINRA’s chairman and CEO. “We are continually incorporating measures designed to root out products and practices that harm investors, as well as providing information and tools that help investors save and invest for their future and avoid costly mistakes. We remain committed to ensuring that those who engage in fraudulent or other activities posing a threat to investors are held accountable.”

In terms of market regulation, FINRA says it has dramatically expanded its equity market regulation program. Looking ahead, it is developing comprehensive cross-market surveillance patterns that are scheduled to be launched in 2012 that will examine trading activity across all markets at one time, rather than having multiple patterns survey each market separately, which it says will help FINRA identify problematic trading activity more quickly.