Brokers and their counsel should analyze the potential for criminal prosecution during the context of a FINRA examination or an examination by another regulatory organization or body. This short video provides some basic information on these examinations and parallel criminal proceedings.
Brokers should be aware that FINRA is not a government agency and that it does not prosecute criminal actions. Nevertheless, they do make referrals of criminal misconduct to prosecutors where warranted, and they may also be asked to cooperate (voluntarily or through subpoenas) with criminal investigations. As such, if you are the subject of a regulatory examination, be sure that when you determine how to deal with the matter that you are attentive to any risks of criminal action against you. To assist you in that regard, I always recommend that you engage experienced legal counsel to help guide you through the process.