A Few Minutes With FINRA

FINRA Executive Vice President and Head of Enforcement Susan Schroeder sits down with Senior Vice President of Member Relations and Education Chip Jones to discuss new guidance on credit for extraordinary cooperation in investigations, as described in Regulatory Notice 19-23. (7 min. 11 sec.)

In a follow up to a recent episode of A Few Minutes With FINRA, FINRA Executive Vice President of Enforcement Susan Schroeder answers questions FINRA has received from firms in response to its 529 Plan Share Class Initiative. (11 min. 58 sec.)

Chip Jones and Susan Schroeder discuss the 529 Plan Share Class Initiative. Under the program, firms can self-report to FINRA by April 1, 2019, supervisory violations related to 529 plan share-class recommendations and include a plan to remediate the issue; and in response, FINRA Enforcement will recommend that FINRA accept a settlement that includes restitution for the impact on affected customers and a censure, but no fine. (7 min. 33 sec.)

FINRA’s Senior Vice President of Member Relations and Education Chip Jones, leads a discussion with Chief Information Security Officer John Brady, Senior Director Steve Polansky and Kansas City Surveillance Director Dave Kelley, on FINRA’s 2018 report on selected cybersecurity practices. The discussion includes an overview of the report, which highlights effective practices in five challenging areas that firms should consider to strengthen and further develop their cybersecurity programs—as well as core cybersecurity controls for small firms. (30 min. 17 sec.)

Chip Jones, FINRA’s Senior Vice President of Member Relations and Education, talks with Bari Havlik, FINRA’s Executive Vice President of Member Supervision, about the recent decision to consolidate FINRA’s examination and risk monitoring programs. The discussion includes an overview of how FINRA plans to integrate three separate programs into a single, unified program to drive more effective oversight, reduce duplication and create a single point of accountability for the examination of firms. (6 min. 42 sec.)

Chip Jones, FINRA’s Senior Vice President of Member Relations and Education, talks with Wendy Lanton, Chief Compliance Officer of Lantern Investments and Chair of the Small Firm Advisory Committee (SFAC), about the SFAC and the work it does on behalf of small firms. The discussion includes an overview of the committee structure, the 2018 SFAC election, and information on how small firms can get more involved and raise issues to be addressed. (17 min. 59 sec.)

Chip Jones, FINRA’s Senior Vice President of Member Relations and Education, leads a discussion with John Kalohn, Vice President, Testing & Continuing Education, and Joe McDonald, Senior Director, Qualifications & Exams, about FINRA’s exam restructuring initiative. (10 min. 13 sec.)

Mike Rufino, Executive Vice President and Head of FINRA Member Regulation—Sales Practice, talks about FINRA’s High-Risk Registered Representative Program. The discussion includes an overview of the program, the criteria FINRA uses to identify high-risk activity, and tools and resources that are available to help firms perform their own reviews. (8 min. 45 sec.)

FINRA Cam Funkhouser, Executive Vice President of FINRA’s Office of Fraud Detection and Market Intelligence (OFDMI), suggests some “red flags” firms should look out for with regard to insider trading, provides an overview of recent cases his office has handled, and explains how to contact FINRA with a tip about insider trading or other fraud. (8 min. 11 sec.)

Bill Wollman and Mike Rufino explain the nine risks that inform FINRA’s risk-based examination and surveillance program, and give examples of what staff looks for when assessing a firm’s risk. (19 min. 52 sec.)