BROWSE BY TOPIC
Stories of Interest
- FINRA Board of Governors - Election Notice
- Trump Signs Biggest Rollback of Bank Rules Since Financial Crisis
- SEC Commissioners Hold Investor Town Hall in Atlanta
- SEC Proposes FAIR Act Rules to Promote Research Reports on MFs, ETFs, Other Funds
- FINRA Markup/Markdown Analysis Report - Phone Workshop, WebEx Presentation
- NASAA Announces Coordinated International ICO and Crypto Crackdown
- New York Investment Advisor Settles SEC Insider Trading Charges
- Supreme Court Backs Companies Over Worker Class-Action Claims
- Bank of America Introduces Erica, Its AI Financial Assistant
- Banks Are Getting Another Volcker Rule Win
- Citigroup to Pay $7.3Mn Fine for Substandard IPO Work
- FINRA Stretches Definition of Participating in a Private Securities Transaction - Bill Singer
- Post Mortem Auto-Pilot Trading Sends Stockbroker's Career into Head-On Regulatory Crash
- Wells Fargo Has Shown Us Its Contemptible Values
- UBS to Counter Trading Troubles With M&A Work
- SEC Moves Quickly To Shut Down Fake Pre-IPO Share Scam
- SEC Testimony: Oversight of the SEC Division of Enforcement
- FINRA Modifies 'Agency Debt Security' in Rule 6710
- Is Jamie Dimon Doing a U-Turn on Bitcoin?
- After New Yorker's Racist Rant Goes Viral, His Law Firm Gets Pummeled with 1-Star Yelp Reviews
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NEWSLETTERS & ALERTS
FINRA Highlights Its 2017 Exam Priorities
FINRA is using podcasts to highlight its 2017 Exam Priorities that were disseminated to member firms earlier this year. In today’s podcast, the third in a 4-part series, FINRA presents the following observations pertaining to key issues:
1. CYBER SECURITY. FINRA has noted repeated branch cyber compliance shortcomings pertaining to:
- branch office cyber compliance controls - (i) password strength and sharing; (ii) data encryption; (iii) portable storage device use; (iv) virus protection.
- correct data storage – (i) failure to store certain records in non-rewritable, non-erasable format.
2. FIRM’S OWN TESTING OF SUPERVISORY CONTROLS. FINRA notes that controls most commonly break down when a firm increases the scales or scope of its business, or it changes from a legacy to a new compliance system. Most common
3. CUSTOMER PROPERTY AND SEGREGATIONS OF CLIENT ASSETS (SEC RULE 15C3-3). When looking at firms’ documentation and procedures, FINRA has noted: (i) some firms engage in transactions with little or no economic substance just to reduce their reserve or segregation requirements.
4. SEC REG. SHOW (SHORT SALES). FINRA finds that: (i) firms don’t always have reasonable grounds to believe that shares are available for borrowing before entering short sales.
5. AML AND SUSPICIOUS ACTIVITY TRANSACTIONS. FINRA has noted deficiencies related to: (i) data integrity issues; (ii) suspicious microcap activity; (iii) foreign currency transaction monitoring; and, (iv) accounts controlled by nominee companies.
6. MUNI ADVISOR REGISTRATION. FINRA finds that: (i) some firms are not registering correctly with the SEC and the MSRB; and, (ii) not adequately registering their personnel.