What an AWC Is
An AWC is a settlement agreement between FINRA and a broker-dealer (or individual registered representative) that resolves an investigation or disciplinary proceeding. By signing an AWC, the firm accepts a finding and sanctions (fine, censure, suspension) without admitting or denying the findings. The AWC becomes a public record in FINRA's BrokerCheck system.
Key Sections to Read
An AWC typically includes: a description of the respondent firm; a summary of the alleged or found violations; a detailed factual recitation of the conduct at issue; the specific rules violated; and the sanctions imposed (fine amount, censure, remediation requirements). Reading the factual section is essential for understanding what was actually found, as headlines often simplify complex findings.
Admitted vs. Neither-Admitted-Nor-Denied
AWCs can result in either admissions or 'neither-admit-nor-deny' resolutions. A firm that admits findings has acknowledged the facts as stated. A firm that resolves on a neither-admit-nor-deny basis has not contested the findings for purposes of the settlement but has not admitted them for other purposes. The 2018 SEC fine for Citadel's trade reporting violations was admitted; the 2017 fine was neither-admit-nor-deny.
Finding AWC Documents
FINRA AWC documents are accessible through FINRA's BrokerCheck system for the relevant firm's CRD number, and many are also published in FINRA's online disciplinary actions database at finra.org/industry/disciplinary-actions. SEC enforcement orders are available at sec.gov/litigation.