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FINRA’s Top 5 Exam Priorities for 2017

FINRA has just released its Annual Regulatory and Examination Priorities Letter, which highlights areas the regulator will focus on in its 2017 exam, such as advisors with repeat offenses and other misconduct.

As in previous years, the 2017 exam letter emphasizes the main issues of compliance, supervision and risk management. The letter aims to help firms identify business priorities and enhance compliance, supervisory and other controls.

FINRA is targeting:

  1. “High risk brokers” or brokers with multiple offenses
  2. Bad sales practices including sales to seniors and suitability
  3. Risky conduct such as cyber security
  4. Market manipulation
  5. Financial Security or firms lacking liquidity risky management plans

In addition, FINRA states it will begin using electronic, off-site reviews to supplement its on-site cycle examinations. The group intends to “make targeted and limited information requests to firms and then analyze the responses off site.”

It also says the off-site exams will affect only “a select group of firms that are not currently scheduled for a cycle exam in 2017.”

The foregoing information, which is all publicly available, is being provided by The White Law Group.  The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For information on the firm please visit www.whitesecuritieslaw.com.

For a free consultation with a securities attorney, please call The White Law Group at 1-888-637-5510.

Tags: , , , , Last modified: December 9, 2022