New York, NY securities attorney Jenice L. Malecki shares her experience in state investigations. She explains that state investigations are quite similar to those conducted by FINRA and the SEC, but they are overseen by state regulators, each with its own structure and name—for example, the New Jersey Bureau of Securities or the New York State Department of Law, Securities Division. These proceedings often run in parallel, and many professionals do not realize that a FINRA sanction can trigger state-level scrutiny. Regulators in states where an individual is registered may review the FINRA outcome and initiate their own inquiries, potentially threatening licensure or registration in that state.

Because state regulators operate under their own rules and procedures, it is critical to have experienced legal counsel. Without a lawyer, individuals are at a disadvantage—they may not fully understand the process, the limits of regulatory power, or how to effectively advocate for themselves. Engaging skilled counsel, such as a state investigations lawyer, is essential to navigate these proceedings and protect licenses and registrations to the greatest extent possible.