FINRA Podcast: A Few Minutes with FINRA Featuring Chairman Ketchum on Conflicts of Interest

FINRA has released a podcast featuring a discussion with FINRA Chairman and CEO Rick Ketchum regarding the recently released report on conflicts of interest in the broker-dealer industry.

In the podcast, Mr. Ketchum stated that FINRA has long been concerned with conflicts of interest and the way that firms manage their conflicts practices. According to Mr. Ketchum, the report is not about creating obligations for firms or new rulemaking, but rather about identifying and understanding how firms manage conflict issues. He said that, while FINRA does have conflicts of interest regulation in its rules in some areas, for the most part FINRA is focused on passing along helpful information to help firms with their own individual compliance programs. To successfully manage conflicts of interest, Mr. Ketchum said, a firm must continually evaluate its conflicts program and identify key areas in which conflicts could most likely cause problems. He also stated that firms must focus on compensation issues, such as how to manage incentives from compensation.

To listen to the podcast, click here. Related news: FINRA Publishes Report on Conflicts of Interest in the Broker-Dealer Industry (with Lofchie Comment) (October 15, 2013).