How to Use the Report
We selected the topics in this Report for their interest to the largest number of firms; consequently, they may include areas that are not relevant to an individual firm and omit other areas that are applicable.
FINRA advises each firm to review the Report and consider incorporating relevant elements into its compliance program in a manner tailored to the firm’s activities and applicable regulatory requirements. The Report is intended to be just one of the tools a firm can use to help inform the development and operation of its compliance program; the Report does not represent a complete inventory of regulatory obligations, compliance considerations, findings, effective practices or topics that FINRA will examine.
FINRA also reminds firms to stay apprised of new or amended laws, rules and regulations, and update their written supervisory procedures (WSPs) and compliance programs in response. Firms may contact their Risk Monitoring Analyst if they have any questions about the observations, findings or effective practices included in this Report.
The Report contains the following for each topic area:
- Regulatory Obligations—A brief description of relevant federal securities laws, regulations and FINRA rules.
- Effective Practices—Select effective practices, including those that FINRA has observed through our oversight activities, which may help firms in tailoring their compliance programs depending on their business model, size and practice.
- Additional Resources—A list of relevant FINRA Regulatory Notices, other reports, tools and online resources.
Additionally, as applicable, the topic areas in the Report may contain information on:
- Findings—Information from recent reviews, examinations, market surveillance, investigations or enforcement activities; or findings we highlighted in prior Reports and that we continue to note in recent oversight activities.
- Observations—Items that are observed weaknesses in firm compliance programs that could benefit from review and additional enhancements.
- Emerging and Continuing Trends and Risks—Potential concerns due to an evolving landscape that may pose new or additional risk for customers and firms.
The Report also includes an Appendix that outlines how firms have used similar FINRA reports (e.g., Findings Reports, Priorities Letters) in their compliance programs.
As a reminder, the Report—as with our previous Exam and Risk Monitoring Reports, Findings Reports and Priorities Letters—does not create any new legal or regulatory requirements or new interpretations of existing requirements, or relieve firms of any existing obligations under federal securities laws and regulations. You should not infer that FINRA requires firms to implement any specific practices described in this Report that extend beyond the requirements of existing federal securities provisions or FINRA rules. Rather, firms may consider the information in this Report in developing new, or modifying existing, compliance practices. Moreover, some content may not be relevant to individual firms based on their business models, size or practices.