FINRA CEO Robert Cook Pushes for Organizational Change

FINRA President and CEO Robert Cook emphasized the need for FINRA to adapt and make progressive changes in response to an evolving financial industry. At the 2017 FINRA Annual Conference, Mr. Cook highlighted FINRA360, a program designed to review all aspects of FINRA's organizational performance, including (i) the organizational and operational efficiency of regulatory functions, (ii) the effective utilization of data and technology, and (iii) how FINRA uses various tools and metrics to measure regulatory program success. Mr. Cook also discussed the benefits and disadvantages of FINRA's status as a self-regulatory organization, stating that:

"FINRA stands at a unique intersection of regulation and industry: our mission is investor protection and market integrity, and our task is to work with our members and other stakeholders to cultivate and deploy a deep expertise in the securities industry and enable regulation that is more effective—and more efficient—than would be possible if the government acted alone."

Mr. Cook noted the recent establishment of the FINRA Regulatory Operations Oversight Committee. The new Committee will assess regulatory operations, including examinations and enforcement, and will contribute guidance and recommendations for changes to be implemented through FINRA360.

Mr. Cook also identified the need for FINRA to evolve in both utilizing technology within the organization and supporting financial services' technological innovation. He announced that FINRA anticipates launching a FINRA Innovation Outreach Initiative in the near future to interact and cooperate with FinTech companies in the securities industry.

Mr. Cook committed to providing better compliance tools and resources for members and strengthening communication and engagement channels with market participants. Further, he reiterated FINRA's commitment to aggressively policing high-risk brokers and the firms that employ them.

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