FINRA report explores exam, risk monitoring program

Financial Industry Regulatory Authority (FINRA) officials are detailing the organization’s 2023 Examination and Risk Monitoring Program report, which provides firms with compliance program strengthening insights.

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“This report represents a holistic approach to FINRA regulation, leveraging information from across our regulatory operations to provide member firms with information to help them enhance their core compliance programs,” FINRA Member Supervision Executive Vice President Greg Ruppert said. “The report addresses topics that remain perennially important, with updates to reflect evolving risks, industry trends, and findings from FINRA’s recent oversight activities. This year, we have also increased the breadth of the report’s coverage by adding several new topics focused on insights originating in our market surveillance activities.”

Manipulative Trading, Fixed Income, Fractional Shares, Regulation SHO, and a Financial Crimes section are among the new topics added to the report.

FINRA maintains via the report cybersecurity threats continue to be one of the most significant risks facing customers and firms; the organization would provide firms with more information regarding Regulation Best Interest (Reg BI) and Form CRS mandates; and indicates the increasingly widespread use of mobile apps calls for an examination of risks posed by them becoming more significant.

FINRA noted it is dedicated to investor protection and market integrity.

The 2023 Report on Exam and Risk Monitoring Program can be accessed through the FINRA website.