Background
Examinations are central to FINRA's regulatory operations, and they are one of the principal means by which the organization protects investors and promotes market integrity. FINRA's examinations also aim to provide valuable feedback to firms on areas for improvement and best practices based on insights we have gathered from examining others in the industry.
FINRA has
Background
Until mid-2017, FINRA maintained two distinct enforcement teams within the organization—one handling disciplinary actions related to trading-based matters found through our market surveillance and trading examination programs, and the other handling cases referred from other regulatory oversight divisions within FINRA, such as sales practice examinations and our Office of Fraud
FINRA360 has yielded a number of organizational and operational changes aimed at making FINRA a more efficient, more effective regulator.
Changes to FINRA Enforcement Structure
FINRA Examination Program Improvements
FINRA Annual Budget Summary and Financial Principles
Interim Report on Use of Fine Monies
Data and Analytics
Regulatory Operations Oversight Committee (ROOC)
Enhancements to
We launched FINRA360 in March 2017 with one overarching objective: to ensure that FINRA is operating as the most effective and efficient self-regulatory organization (SRO) we can be.
The time was right for us to begin such a review. In the 10 years since the NASD and NYSE Regulation merged to form FINRA, the industry and financial markets had changed significantly. And in traveling
UPDATE 10/19/2018: During the week of Oct. 8, 2018, exceptional market volatility again produced record numbers of electronic messages processed by FINRA, including the three highest-volume days in history:
The 107 billion messages processed on Oct. 10 topped the previous record of 101 billion set on March 28, 2018.
The very next day – Oct. 11 – saw a significantly higher record set: 135
Just over one year ago, FINRA launched the Innovation Outreach Initiative as part of FINRA360, our comprehensive organizational review. The Initiative began an ongoing dialogue with industry participants, investor advocates and policy makers centered on the implications of financial technology (fintech) for the broker-dealer industry.
Imagine a new age of regulation in which compliance efforts were highly effective, and were also inexpensive. This seeming alchemy is coming to financial services in the form of new-generation “regtech.”
We are conducting a comprehensive self-evaluation and organizational improvement initiative called FINRA360. The objective of this effort, which CEO Robert Cook launched in early 2017, is to ensure that FINRA is operating as the most effective self-regulatory organization (SRO) it can be, working to protect investors and promote market integrity in a manner that supports strong and vibrant
Listen to FINRA CEO Robert Cook discuss proposed new Rule 4111 at the 2019 FINRA Annual Conference.
Summary
As part of FINRA’s ongoing initiatives to protect investors from misconduct, FINRA is requesting comment on proposed new Rule 4111 (Restricted Firm Obligations) that would impose tailored obligations, including possible financial requirements, on designated member firms that cross
Industry Governor (Independent Dealer/Insurance Affiliate Governor)
President and CEO, Cambridge Investment Research, Inc.
Governor Since 2017
Committees: Regulatory Oversight Committee
Professional Experience
President and CEO, Cambridge Investment Research, Inc. (1998 – present)
Director, SunAmerica Securities, Inc. (1995 – 1998)
Operations Principal, Coordinated Capital
