FINRA REPORTS ON ITS EXAMINATION AND RISK MONITORING PROGRAM
As a guiding document comparable to the OSC’s Compliance and Registrant Regulation Branch Summary Report of reviews and initiatives, FINRA has published a Report on its Examination and Risk Monitoring Program, which provides firms with information that may help inform their compliance programs. For each topical area covered, the Report identifies the relevant rule(s), highlights key considerations for member firms’ compliance programs, summarizes noteworthy findings from recent examinations, outlines effective practices that FINRA observed during its oversight, and provides additional resources that may be helpful to member firms in reviewing their supervisory procedures and controls and fulfilling their compliance obligations.
The Report identifies and highlights general findings that are particularly relevant for firms in their first year of operation. It also includes several new topics in keeping with industry trends and concerns such as Firm Short Positions and Fails-to-Receive in Municipal Securities; Funding Portals and Crowdfunding Offerings; Disclosure of Routing Information; and Portfolio and Margin Intraday Trading.
Additionally, the Report highlights a series of select topics that are of particular interest to the industry and the general public, where FINRA committed to share its findings, including, but not limited to Order Handling, Best Execution and Conflicts of Interest; Mobile Apps; Cybersecurity; and Complex Products.
We believe IIAC Members will find FINRA’s report useful and instructive to the structure and focus of their Compliance programs.