FINRA’s Head of Enforcement, Jessica Hopper, to Exit after 18 Years

Jessica Hoppers, the Head of Enforcement of the Financial Industry
Regulatory Authority (FINRA), a non-profit body that regulates brokerages that
serve the American public, is set to depart from the organization on February 3 after 18
years of service. The self-regulatory organization (SRO) announced Hopper’s planned exit on Tuesday.

FINRA also disclosed that Christopher Kelly, a Senior Vice President and
Deputy Head of Enforcement, will take over Hopper’s role in an acting capacity
under a new boss for the division is appointed.

Hopper, who joined FINRA in 2004 as an Enforcement Attorney, has served
the membership-based organization in various capacities including as Vice
President of Regional Enforcement between 2011 and 2016 and as the Senior Vice
President and Deputy Head of Enforcement between 2018 and 2020. She became the
Acting Head of Enforcement in September 2019 and took on the role in a
permanent capacity in January 2020.

In a statement, Robert Cook, FINRA’s President and CEO, praised Hopper’s
contributions towards investor protection and ensuring continued market
integrity.

“With Jessica at the helm, the Department of Enforcement returned
millions of dollars to wronged investors, vigorously pursued complex cases throughout significant market disruptions, and completed a re-organization that
has fostered an even more efficient and effective enforcement program,” Cook
explained.

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According to FINRA, the organization recorded some of its biggest
milestones under Hopper’s leadership of the enforcement team. In June 2021, the
regulator ordered Robinhood Financial LLC to pay approximately $70 million for
its “systemic supervisory failures and the significant harm suffered by millions of
customers.” The penalty includes a fine of $57 million and
approximately $12.6 million the firm was ordered to pay to customers in
restitution.

“The sanctions represent the largest financial penalty ever ordered by
FINRA and reflect the scope and seriousness of the violations,” the FINRA said.

Furthermore, the SRO said it instituted its
first-ever disciplinary actions against crowdfunding
Crowdfunding

Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro

Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro
Read this Term portals under the departing executive’s leadership. The actions against the portals were to tackle their failure
to act in compliance
Compliance

In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a

In finance, banking, investing, and insurance compliance refers to following the rules or orders set down by the government regulatory authority, either as providing a service or processing a transaction. Compliance concerning finance would also be a state of being following established guidelines or specifications. This designation can also encompass efforts to ensure that organizations are abiding by both industry regulations and government legislation. Understanding ComplianceCompliance is a
Read this Term with federal securities laws and rules.

“In 2020 and 2021 alone, [FINRA] ordered $72.2 million in customer
restitution, expelled three firms and suspended five others, and barred 515
individuals and suspended 761 others,” the American regulator added, expanding on its records
under Hopper.