Home / CLE / FINRA's 2022 Priorities: Significant Changes and Emerging Issues Affecting Your Compliance Program. The recently issued 2021 Report on FINRA's Examination and Risk Monitoring Program (the "Report") replaces, and combines, two previously published FINRA reports . The report identifies the relevant rule (s), highlights key considerations for member firms' compliance programs, summarizes noteworthy findings from recent examinations, outlines effective practices that FINRA observed during its oversight, and provides additional resources that may be helpful to member firms in reviewing . FINRA saw an increase in the volume and sophistication of these types of attacks over the previous year and issued multiple alerts of its own, warning firms about a series of phishing emails purporting to be from FINRA. Look it up in BrokerCheck. FINRA assumes no liability for penalties or fare increases should the conference sell out or in the unlikely event that changes to the conference dates and/or location become necessary. The 2021 Report on FINRA's Examination and Risk Monitoring Program has officially been released. Mondaq uses cookies on this website. Join us April 13, 2022 at 1:00pm ET as we review key priorities and emerging risks identified by FINRA, share perspective on key challenges firms are facing in these areas, and effective practices firms can implement to be well positioned for a successful 2022. Registered representatives can fulfill Continuing Education requirements, view their industry CRD record and perform other compliance tasks. FINRA Releases 2021 Exam Priorities Letter. The 2022 report confirms that both FINRA Rule 2330 and Reg BI apply when a registered person recommends the purchase or exchange of a variable annuity to a retail customer. Firms should review relevant rules to understand the full scope of their obligations. 1Related Considerations are intended to serve as a possible starting point in considering a firms compliance program related to a topic. For each topical area covered, the Report identifies the relevant rule(s), highlights key considerations for member firms compliance programs1, summarizes noteworthy findings from recent examinations, outlines effective practices that FINRA observed during its oversight, and provides additional resources that may be helpful to member firms in reviewing their supervisory procedures and controls and fulfilling their compliance obligations. IPACONNECT | DECEMBER 6-8; 2023. The conference offers industry professionals a variety of sessions related to current trends in technology, cybersecurity, risk management and much more. FINRA, overseen by the SEC, writes rules, examines for and enforces compliance with FINRA rules and federal securities laws, registers broker-dealer personnel and offers them education and training, and informs the investing public. accounts. In addition, those general findings that are also particularly relevant for firms in their first year of operation are denoted with a star (). Shortly afterwards, the Securities and Exchange Commission's Division of Examinations (the "Division") posted its 2022 Examination Priorities . It also outlines findings from the most recent examination process and offers assistance to member businesses on how to examine their supervisory procedures and controls to meet their compliance requirements. Introduction. FINRA also highlights several new risk areas for 2022, including: Firm short positions and fails-to-receive in municipal securities; The 2022 Annual Conference was held May 16-18. FINRA 2022 Risk Monitoring and Examination Priorities. Much like we did with the FINRA letter, we offer our thoughts below. With the publication of the Financial Industry Regulatory Authority's (FINRA) report on its examination and monitoring priorities for 2022, broker-dealer (BD) firms now face a new set of compliance obligations to enhance investor protection and market integrity. ACA Group has announced its Managed Services as a comprehensive compliance offering to firms of all sizes around the world. The five areas are: 1. The 2022 report introduces the following new topics: The Selected Highlights section of the 2022 report noted the following key areas, which FINRA identified as areas of considerable industry, and in some cases public, attentionthat FINRA also addressed through its exam and risk monitoring program: FINRAs observations do not provide an exhaustive list of what regulators will review during examinations. . Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal. File a complaint about fraud or unfair practices. FINRA will assess firms' Written Supervisory Procedures (WSPs) during exams to ensure that a plan for getting contact information for TCPs is in place. The sweeps are expected to continue into the new year. We hope that by sharing these areas of potential examination focus, you and your firm will be well armed to assess your compliance operations, internal controls, and supervisory systems. Event Summary: The Financial Industry Regulatory Authority (FINRA) recently released the 2022 Report on FINRA's Examination and Risk Monitoring Program which presents findings from the latest examination process. 901 Massachusetts Avenue, NW Firms are generally expected to "produce and keep, in an easily accessible area, originals of all communications received and sent relevant to its business as suchamong other things. File a complaint about fraud or unfair practices. https://www.finra.org/rules-guidance/guidance/reports/2022-finras-examination-and-risk-monitoring-program. Earlier this year, the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) published their annual examination priorities letters (the Priorities Letters or the Letters). WASHINGTONThe Financial Crimes Enforcement Network (FinCEN) today issued the first government-wide priorities for anti-money laundering and countering the financing of terrorism (AML/CFT) policy (the "Priorities"), following consultation with other relevant Department of the Treasury offices, as well as . To that end, the Report builds on the structure and content in the 2021 Report by adding new topics (e.g., Disclosure of Order Routing Information, Funding Portals) denoted NEW FOR 2022 and new material (e.g., new exam findings, effective practices) to existing sections where appropriate. Predictions from regulatory experts on FINRA and SEC examination priorities in 2021, including updated communications policies and addressing cyber risk. Department of Labor Fiduciary and Other Retirement Plan Developments. Accenture is pleased to be participating in the 2022 SEC and FINRA Examination and Enforcement Priorities webinar on Monday 28 March from 12:30 - 1:30pm EDT. In its report, FINRA cites five new compliance areas that it examined in 2021 along with deficiencies in each that firms should focus on in 2022. FINRA will continue to review firms' compliance with Exchange Act Rule 10b-10 and FINRA Rules 2232 and 3310. Webcasts, Conferences, and Training. Exam Time: Annual Exam and Risk Monitoring Findings The Financial Industry Regulatory Authority (FINRA) recently released the 2022 Report on FINRA's Examination and Risk Monitoring Program which presents findings from the latest examination process. On October 8, 2021, FINRA issued Regulatory Notice 21-36 urging firms to consider how to incorporate the government-wide Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Priorities into their AML programs.. Background. . Report a concern about FINRA at 888-700-0028, Advancing Market Regulation and Transparency, On The Front Lines of Protecting Investors. It also assumes, likely with reason, that such non-bank financial institutions ("NBFIs") may not have been attuned to the potential ramifications of the Priorities for their business. 2015 Regulatory and Examination Priorities Letter. Arbitration and mediation case participants and FINRA neutrals can view case information and submit documents through this Dispute Resolution Portal. 2022, FINRA highlights findings relating to inadequate controls and procedures for preventing, Join us April 13, 2022 when we will discuss how the recently released 2022 examination priorities may impact you and your compliance program. The new sections among the publications 21 topics are: Focus areas highlighted in the Report include: For the first time, the publication emphasizes new material in sections that have appeared in previous iterations, as well as findings that are particularly relevant for firms in their first year of operation. BI and CRS), Market Access Rule compliance, and net. The importance of these standards in the context of digital asset communications, mobile apps, and municipal securities communications was noted by FINRA in the Report. We help our clients manage regulatory compliance, cybersecurity and risk, and performance verification through our consulting, outsourcing, and technology solutions. Get started today before this once in a lifetime opportunity expires. . 2021 was quite the year in the securities industry another year of incredibly-volatile markets, as COVID-19 continued to interrupt daily life, and another year of FINRA attempting to prove that there's value to its existence. For each topic, the report identifies the applicable rules and highlights key considerations for member institutions' compliance programs. On February 9, 2022 the Financial Industry Regulatory Authority (FINRA) released its 2022 Report on FINRA's Examination and Risk Monitoring Program. Here is a list of FINRA's top 8 priorities for 2022 as well as some of the rules and regulatory notices that may be published, according to ThinkAdvisor. It is critical to identify the risk areas relevant to a firm's business activities and assess the compliance policies that have been implemented to meet applicable rules and regulations as part of a firm's 2022 planning. Many of the exam findings from the previous year demonstrate that many registered persons are still failing to meet their requirements to notify their firms of their OBA and PST activities in writing. Insufficient WSPs for Reg BI and Form CRS, insufficient staff training, failure to comply with the Care Obligation and the Conflict of Interest Obligation, improper use of the terms "advisor" or "adviser," insufficient Reg BI disclosures, and more were among the most prominent findings. Where a firm chooses not to undertake an order-by-order review, it must have mechanisms in place to ensure it conducts "frequent and rigorous" reviews of the execution quality of its customers' orders regularly, following Rule 5310 and related guidelines. This webcast will review key priorities and emerging risks identified by FINRA, challenges firms are facing in these areas, and effective practices firms can implement to be well positioned for a successful 2022. Where appropriate, FINRA will also share information about cybersecurity threats to firms. The Financial Industry Regulatory Authority (FINRA) issued a regulatory notice on Oct. 8, 2021, encouraging its broker-dealer members to review and prepare to incorporate into their own compliance programs the national priorities for anti-money laundering (AML) and countering the financing of terrorism (CFT) policy (the Priorities) established by the U.S. Treasury Department's Financial Crimes . "Today's securities industry landscape is highly dynamic in terms of business models, technologies, products and compliance practices," said Greg Ruppert, Executive Vice . Over the last couple of decades, the securities self-regulatory organization FINRA (f/k/a NASD) informs its membership each year of . Report a concern about FINRA at 888-700-0028, Securities Industry Essentials Exam (SIE), Financial Industry Networking Directory (FIND). FINRA recently published its "Report of FINRA"s Examination and Risk Monitoring Program," covering topics such as Regulation Best Interest, cybersecurity, private placements, advertising and consumer protection. Federal Income Tax Developments. Furthermore, companies must include thorough cybersecurity and phishing-specific training in their annual training programs. Firms should analyze the priorities concerning their business operations carefully to identify potential gaps and/or opportunities for improvement in their compliance programs and supervisory processes. The Anti-Money Laundering Act of 2020 became law on January 1, 2021 updating the Bank Secrecy Act (BSA). (New material in existing sections is in bold type.) FINRA members should complete the form below and click "Submit" to proceed. In its Risk Monitoring and Examination Priorities Letter (the "2021 Letter"), FINRA identified several areas of focus for 2021, including: Firm Operations.FINRA will assess firms' compliance with (i) AML regulatory obligations, including FINRA Rule 3310, (ii) cybersecurity and technology governance requirements, including FINRA Rule 4370, (iii) outside business activities and private . Early in the year, FINRA released their 2021 Report on FINRA's Examination and Risk Monitoring Program, which is designed to inform member firms' compliance programs by providing annual insights from FINRA's ongoing regulatory operations.. We've distilled the 175-page report into four key areas of focus: Protecting retail investors Supervising public communications Clarifying Regulation Best Interest (RegBi) policies Staying current with cybersecurity CLE: 1.5 Credits | Broadcast Date: Tuesday, September 20, 2022 from 3:00 PM to 4:30 PM ET | Price Includes CLE & Recording. Washington, D.C. - FINRA today published its 2022 Report on FINRA's Examination and Risk Monitoring Program to provide insights from FINRA's oversight programs to FINRA member firms. FINRA Rule 4512 (a) (1) (F) (Customer Account Information) requires firms, for each of their non-institutional customer accounts, to make a reasonable effort to obtain the name and contact information for a trusted contact person (TCP) age 18 or older. From where we sit, the Division's most notable comments are found in its general observations, not in its examination . Q&A with Robert Cook, President and CEO, FINRA. Macroeconomic trends are coming together to create a superstorm making it difficult for the financial industry to find and retain talent, creating compliance risks for firms. 2022; Smarsh Blog. On Feb. 9, 2022, the Financial Industry Regulatory Authority (FINRA) released its 2022 Report on FINRA's Examination and Risk Monitoring Program (Report), in which . At the very least, the prioritized list will serve as a benchmark against which enterprises can assess the efficiency of their controls in addressing critical regulatory areas. Registration is closed. FINRA's 2022 Priorities Enforcement The "sweeps" (targeted exams) begun last year will continue, with a particular focus in 2022 on options account openings, SPACs, and influencers. FINRA also administers a dispute resolution forum for investors and brokerage firms and their registered employees. FINRA - Advertising, Social Media, and Regulatory Developments. Apr 07, 2022 FINRA's 2022 PRIORITIES The Financial Industry Regulatory Authority ("FINRA") issued its 2022 Report on FINRA's Examination and Risk Monitoring Program recently. Please direct questions about registration to (800) 321-6273 or via email. FINRA'S 2022 Report on Examination & Risk Monitoring Program. Organized by topic, the report identifies the applicable rules and key related considerations for broker-dealers compliance programs, summarizes findings from recent examinations, and describes best practices observed during FINRA exams. Overlapping Priorities. The below resources may be helpful as your firm adjusts its compliance program to meet the concerns FINRA outlined in their report. For 2021 . FINRA's 2022 Priorities January 19, 2022 | 3:30 PM - 4:15 PM ET Virtual a one-on-one conversation with finra president and ceo Robert cook (1888PressRelease) September 17, 2022 - This event is scheduled on September 20, 2022 from 3:00 PM to 4:30 PM ET. The 70-page Report covers 21 different topicsincluding five new subjectsrelevant to an evolving securities industry. While each exam is unique to the firm under FINRA's microscope, the Report provides a general roadmap of FINRA's core concerns for 2022. The regulator will continue to scrutinize the third-party vendors that firms use to hold their needed records, as well as each firm's policies and procedures for keeping books and records in the future. The conference offers industry professionals a variety of sessions related to current trends in technology, cybersecurity, risk management and much more. In this report detailing FINRA's top priorities for 2022, FINRA addresses 21 regulatory areas which are grouped into 4 categories: (1) Firm Operations, (2) Communications and Sales, (3) Market Integrity, and (4) Financial Management. On February 1, 2021, the Financial Industry Regulatory Authority ("FINRA") published its 2021 priorities (the "FINRA Report"). These emphasis areas should be familiar to firms and their registered members, and FINRA expects to revisit them in their 2022 inspections. Friday, February 5, 2021. The cover note also highlights key changes in FINRA's risk monitoring and examination program. FINRA's premier eventthe Annual Conference provides the opportunity for practitioners, peers and regulators to exchange ideas on today's most timely compliance and regulatory topics. 2019 Annual Risk Monitoring and Examination Priorities Letter. 2022-57 Washington D.C., March 30, 2022 The Securities and Exchange Commission's Division of Examinations today announced its 2022 examination priorities, including several significant areas of focus and many perennial risk areas. January 08, 2018. Earlier this month, both the SEC and FINRA published their exam priorities for 2020. File a complaint about fraud or unfair practices. 2022. The new priority areas for Firm Operations include the following: . FINRA IS A REGISTERED TRADEMARK OF THE FINANCIAL INDUSTRY REGULATORY AUTHORITY, INC. FINRA operates the largest securities dispute resolution forum in the United States, To report on abuse or fraud in the industry. FINRA has updated the reports format from previous years to highlight the agencys newly identified risk areas and their related considerations. This also defines the circumstances under which firms and their connected persons are permitted to contact the TCP and share customer account information. This event is open to the media. FINRA is focusing on variable annuity exchanges and buyout offers. In February 2022, the Financial Industry Regulatory Authority (FINRA) released the 2022 Report on FINRA's Examinations and Risk Monitoring Program.
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