FINRA Archives

RegEd to Showcase Innovative Technology for Advertising Review at 2022 FINRA Advertising Regulation Conference

Attendees will have the opportunity to learn about the industry’s leading enterprise advertising compliance review solution, powered by advanced capabilities that integrate AI technology to drive speed to market and reduce risk. RegEd, the leading provider of compliance technology solutions to insurance companies, broker-dealers and other financial services firms, is pleased to announce its participation at the FINRA Advertising Regulation Conference in Washington, DC, Oct. 20-21, 2022. FINRA’s Advertising Regulation Conference offers a comprehensive agenda designed for new and experienced communications compliance professionals. Industry and regulatory speakers gather at the conference to facilitate interactive, forward-looking discussions on current practices, policies, […]

FINRA Publishes 2022 Report on Exam and Risk Monitoring Program

The newly released 2022 Report on FINRA’s Examination and Risk Monitoring Program reflects an evolving securities industry. “Today’s securities industry landscape is highly dynamic in terms of business models, technologies, products, and compliance practices. This report looks at these significant changes through the lens of FINRA’s commitment to investor protection and market integrity so that firms’ compliance programs can benefit from our findings about emerging and ongoing issues,” stated Greg Ruppert, executive vice president, member supervision, in a press release announcing the release of FINRA’s 2022 exam report. Exam findings in key areas Focus areas highlighted in the report include: FINRA’s initial findings from its […]

FINRA CEO to SIFMA Audience: Protecting Investors and Addressing Workplace Evolution are Priorities for 2022

Investor protection remains atop FINRA’s priorities for 2022. “There will be a theme around retail-investor protection,” CEO Robert Cook said, during a recent webinar hosted by SIFMA. And FINRA will proceed with some existing initiatives as well as launch new efforts in 2022, he told SIFMA President & CEO Kenneth Bentsen, Jr., in a virtual Q&A session. FINRA will also revisit rules and regulations in light of changes brought about by the COVID-19 pandemic and the industry’s shift to remote work, Cook noted. In doing so, the regulator could modify or extend some short-term responses to make them long-term changes. […]

FINRA Weighs Lasting Impact of Remote Work

FINRA is preparing for a “new normal” in which firms will work remotely even after the pandemic passes. For example, FINRA is considering changing how it defines “branch office” and “office of supervisory jurisdiction” for supervision and inspection purposes based on industry feedback. “Many” commenters that responded to a request for feedback on lessons learned during the COVID-19 pandemic urged the regulator to revisit the definitions under FINRA Rule 3110 because firms have shifted to remote work. “Several commenters expressed concern that without amendments, personal residences of many associated persons will need to be registered (and inspected) to facilitate remote […]

FINRA Extends Remote Branch Inspections Until End of 2022

FINRA has proposed to extend temporary relief allowing firms to conduct their 2022 branch inspections remotely through year-end. If approved by the SEC, the extension of FINRA Rule 3110.17 would extend COVID-related branch office inspection relief that is now scheduled to end on June 30. “The proposed additional six-month extension would provide further clarity to firms on regulatory requirements and account for the time needed for many firms to carefully assess when and how to have their employees safely return to their offices in light of vaccination coverage in the U.S. and transmission levels of the virus, including any emergent […]

Documentation and Compliance Key in FINRA Sweep Exams of Options Accounts

Broker-dealers need to document their firm’s processes for supervising options trading and demonstrate compliance with them in new FINRA sweep exam on option accounts. The industry self-regulator is conducting targeted examinations of broker-dealers’ supervision of options trading as part of its ongoing efforts to protect retail investors. FINRA CEO Robert Cook had indicated in July that the sweep would be coming and the regulator followed through shortly thereafter, releasing its Targeted Examination Letter on Option Account Opening, Supervision, and Related Areas in early August. “Options are tricky and can be difficult to understand for certain investors. Even registered representatives recommending […]

Broker-dealers Hope for Permanent Remote Inspections as FINRA Ponders Extension

Regulators remain open to extending remote examinations for broker-dealers into 2022 and firms hope the relief will last even longer. FINRA President Robert Cook recently reiterated the need for exams to remain remote into 2022 during a conference held by the Securities Industry and Financial Markets Association’s (SIFMA), WealthManagement reported. “What I’d like to see happen here, at least where my thinking currently is, is we would extend it into next year, and that we would also step back and look at that rule more holistically, and think about whether it could use some updating to accommodate a thoughtful, risk-based […]

FINRA Annual Conference 2021: 4 Key Takeaways

Perhaps SEC Chairman Gary Gensler summed up the predominant theme of the recently concluded 2021 FINRA Annual Conference best in the comments he made in the event’s final session. “We need to do whatever we can to ensure that bad actors aren’t playing with working families’ savings and that the rules are enforced aggressively and consistently,” Gensler said in his remarks at this year’s conference, which ran virtually from May 18-20. Traditionally one of the financial services industry’s largest events, the FINRA annual conference, gathers practitioners, peers, and regulators to exchange ideas on timely compliance and regulatory topics. This year’s […]

Regulatory Insights Regarding Compliance Assessments of Regulation Best Interest and Form CRS

These are certainly interesting days. So much is taking the attention of compliance professionals. By now everyone has implemented their business continuity plans (BCP) and likely made modifications to them here and there as the true test of these plans has been realized. BCP has now become yet another compliance ball to juggle for the foreseeable future. BCP recordkeeping will be important so be sure to track as you go. Regulators are certain to ask about this in upcoming exams. Now that everyone is settled into their temporary work environments and any BCP gaps have been shored up, the looming […]

Observations From FINRA’s January 2020 Disciplinary Actions Report

Outside business activities and private securities transactions were a focus of FINRA’s January 2020 Disciplinary Actions Report with at least nine (9) cases being cited within the report. Several registered persons were sanctioned for failure to notify and obtain prior written approval from their member firm before engaging in an outside business activity or private securities transactions. Those who failed to cooperate with FINRA’s investigation by refusing to provide on-the-record testimony have been barred from the industry. For those who did cooperate in the FINRA investigation, all but one received fines. Fines ranged from $10,000 to $30,000. (A fine was […]

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