The U.S. Financial Industry Regulatory Authority (FINRA) is restructuring its enforcement function under a new division chief.
FINRA announced on Wednesday that it’s planning to consolidate its existing enforcement activities into a new, unified enforcement group that will be led by newly promoted executive vice president and head of enforcement, Susan Schroeder. She has served as acting head of enforcement since the division’s previous head, Brad Bennett, departed earlier this year.
The restructuring of the SRO’s enforcement activities stems from a strategic review, known as FINRA360, that was launched under new CEO Robert Cook. FINRA says that the planned new unit will consolidate its existing separate enforcement teams.
Currently, FINRA has one team that handles trading-related cases that are uncovered through market surveillance and compliance exams and a separate team that deals with cases that originate from its other oversight divisions.
“A vigorous and effective enforcement program is central to FINRA’s mission of protecting investors and promoting market integrity,” says Cook in a statement. “After careful study, we have determined that this new structure will better enable this critical program to achieve those important goals in the years to come.”
Planning for the consolidation is to begin immediately under the oversight of a steering committee of senior executives, FINRA says.
“This unified structure will improve our ability to streamline investigations, share information, and maximize our resources to protect investors and the markets,” Schroeder says in a statement.
Under the new structure, Schroeder will report directly to Cook. Before taking over as acting head earlier this year, Schroeder was senior vice president and deputy chief of enforcement. Prior to joining FINRA in 2011, she was a partner in the securities litigation and enforcement practice at Washington, D.C.-based law firm Wilmer Cutler Pickering Hale and Dorr LLP.