What sanctions may be imposed in a securities arbitration case?

In a securities arbitration case in California, a variety of sanctions may be imposed as a penalty for misconduct in a securities transaction. Sanctions may include fines, disgorgement of profits, suspension or revocation of a security license, or a prohibition from serving as a director or officer of a company. Fines, which may be imposed on parties or arbitrators in a securities arbitration case, are enforced by the Securities and Exchange Commission and are used to punish violations of securities laws. Disgorgement of profits is a remedy designed to return money to the investors wronged in a securities transaction. Suspension or revocation of a security license means that the licensee may no longer act as a broker/dealer or other securities-related position. Prohibition from serving as a director or officer of a company is also a sanction that may be imposed in a securities arbitration case. This sanction is intended to protect the interests of shareholders and the public by preventing someone with a history of violating the securities laws from holding a high-level position in a company. Overall, the sanctions in a securities arbitration case serve the goals of restitution, deterrence, and punishment. Sanctions are tailored to each case, based on the severity of the misconduct and the goals of the arbitration. By imposing sanctions, the securities industry is better able to protect investors and promote market integrity.

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What sanctions may be imposed in a securities arbitration case?

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