Regulatory Update: FINRA Publishes 2019 Report on Examination Findings and Observations

FINRA today published its 2019 Report on FINRA Examination Findings and Observations. The report reflects key findings and observations identified in recent examinations, and contains effective practices that could help firms improve their compliance and risk management programs. It summarizes findings and observations across a range of topics, including:

• Sales Practice and Supervision

  • Supervision

  • Suitability

  • Digital Communication

  • Anti-Money Laundering (AML)

  • Uniform Transfers to Minors Act (UTMA) and Uniform Grants to Minors Act (UGMA) Accounts

• Firm Operations

  • Observations on Cybersecurity

  • Business Continuity Plans

  • Fixed Income Mark-up Disclosure

• Market Integrity

  • Best Execution

  • Direct Market Access Controls

  • Short Sales

• Financial Management

  • Observations on Liquidity and Credit Risk Management

  • Segregation of Client Assets

  • Net Capital Calculations

Learn more here: https://www.finra.org/media-center/newsreleases/2019/finra-publishes-2019-report-examination-findings-and-observations