FINRA Issues 2024 Regulatory Oversight Report
Commentary by Steven Lofchie
FINRA summarized oversight findings drawn between 2021and 2023 by its Member Supervision, Market Regulation and Enforcement programs.
FINRA's Annual Regulatory Oversight Report, formerly known as the Report on "FINRA's Examination and Risk Monitoring Program," highlighted the (i) rules; (ii) compliance considerations; (iii) oversight findings; (iv) best practices; and (v) a set of related resources on an "evolving" number of substantive categories. These include: Financial Crimes (cyber, AML, spoofing); Crypto (new); Operations (outside activities of employees, books and records, and reporting negative events to FINRA); Communications and Sales (primarily Reg BI); Market Integrity; and Financial Management (including Portfolio Margin and day trading).
FINRA advised member firms to "review the Report and consider incorporating relevant elements into its compliance program in a manner tailored to its activities."
Commentary
Even if its past the New Year, it's not too late for firms to update their list of resolutions, and it certainly makes sense to tailor those resolutions to FINRA's list of concerns.
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