By Elizabeth Dilts


NEW YORK (Reuters) - (This version of the July 26th story corrects headline and first sentence to reflect that FINRA's Enforcement division was expanded to include members of the market regulation disciplinary group, not the market regulation surveillance and examination groups)


The Financial Industry Regulatory Authority on Wednesday named Susan Schroeder the new head of its enforcement division and expanded the unit to include members of the market regulation group who investigate trading violations.


The changes are part of a broad reorganization the securities industry self-regulator's new Chief Executive Robert Cook launched earlier this year. Cook took over the top job at FINRA in the fall of 2016 after Richard Ketchum, who had led the group since 2009, stepped down.


Cook has said he is looking for ways to make the regulator more efficient and considerate of member firms' suggestions.


Schroeder, who has been the acting head of enforcement since February, is tasked with oversight of the firm's roughly 300 enforcement staff located at 16 offices across the country.

The enforcement staff are tasked with being the policemen for many of FINRA's investor protection initiatives, such as the high risk broker program, which identifies brokers who have been the subject of a number of investor complaints or rule violations and puts them under greater surveillance.

The enforcement division also handles cases referred to it from the Office of Fraud Detection, Advertising Regulation and others.

In addition to the enforcement division, Schroeder will also oversee a group that handles trading violations uncovered during market surveillance.

(Reporting By Elizabeth Dilts; Editing by Bernard Orr)