The Financial Regulatory Authority (“FINRA”) recently issued a comprehensive report on compliance issues noted in its examination program (the “Report”). The Report is intended to assist broker-dealers in identifying and addressing potential weaknesses in their compliance procedures, and discusses 19 different topics. Each section includes a summary of the relevant regulatory requirements, a series of suggested questions that broker-dealers should consider regarding compliance with those requirements, recent FINRA examination findings and suggested “effective practices” to enhance compliance. Several sections include useful links to additional FINRA and SEC resources.
FINRA suggests that broker-dealers can use the Report (i) as a tool for reviewing the adequacy of their current compliance procedures, (ii) to identify gaps in their procedures that need to be addressed, (iii) to flag additional risks that they should monitor, and (iv) as a training and informational source for keeping personnel informed and focused on compliance requirements.
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