FINRA to Examine Crypto Asset Retail Communications

FINRA is conducting targeted exams of retail communications on crypto asset products and offerings. The period under examination is July 1, 2022 through September 30, 2022.

In the Targeted Exam letters, FINRA is asking firms or their affiliates to provide all retail communications on the firm's behalf "that refer to, relate to, or concern" a crypto asset or service "involving the transaction or holding of" a crypto asset.

FINRA also requested that firms provide, among other things:

• the date the communication was first made;

• the crypto asset and/or service to which the retail communication refers;

• whether the communication was approved by a registered principal of the firm;

• whether the communication was filed with FINRA's Advertising Regulation Department;

• supervisory procedures relating to the review, recordkeeping, dissemination and approval of such communications;

• compliance policies, manuals and other written guidance concerning such communications; and

• contracts or other written agreements in place between the firm and any affiliate concerning services offered by the affiliate and how the firm uses customer information to determine who receives certain communications.