Finra Gets Brokers’ Challenge to Enforcement Power Tossed (1)

A pair of broker-dealer firms failed to adequately plead most of their claims that the Financial Industry Regulatory Authority’s enforcement procedures violate the US Constitution, a federal court ruled.

Scottsdale Capital Advisors Corp. and Alpine Securities Corp.'s remaining claim, under the Seventh Amendment, would have to be brought directly in a federal appeals court, Judge Beryl A. Howell said Thursday.

The US District Court for the District of Columbia lacks jurisdiction over that aspect of the case, which claims that firms facing Finra penalties are entitled to jury trials, Howell said.

Finra “is pleased with the DC district court’s ruling ...