In both 2017 and 2018, FINRA issued Reports on Examination Findings in response to firms’ requests that we make publicly available a summary of key findings from FINRA’s examinations of member firms. Firms use this information, as well as effective practices observed by FINRA at certain firms, to anticipate potential areas of concern and improve their procedures and controls. (We subsequently refer to the two prior years’ documents as the “2017 Report” and the “2018 Report.”)
Regulatory Obligations and Related Considerations
Regulatory Obligations
Exchange Act Rule 15c3-1 (Net Capital Rule) requires that firms must at all times have and maintain net capital at specific levels to protect customers and creditors from monetary losses that can occur when firms fail. Exchange Act Rule 17a-11 requires firms to notify FINRA in the event their net capital falls below the “
The 2022 Report on FINRA’s Examination and Risk Monitoring Program (the Report) provides firms with information that may help inform their compliance programs. For each topical area covered, 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 their supervisory procedures and controls and fulfilling their compliance obligations.
Regulatory Obligations and Related Considerations
Regulatory Obligations
Under the financial responsibility rules, and related supervisory obligations, firms need to properly capture, measure, aggregate, manage and report credit risk, including risk exposures that may not be readily apparent. Such responsibility can be incurred under clearing arrangements, prime brokerage arrangements (
Investors of Color are Entering the Market at a Faster Pace than White Investors and Tend to Be Much Younger, Report Shows
As part of its Transparency Services improvement initiative, beginning on February 26, 2024, FINRA will re-platform the TRACE for Treasuries (TS) product to a new Linux-based operating system. FINRA encourages testing participation in this effort to validate that all processes work within clients’ TRACE reporting framework. FINRA will sponsor the second production User Acceptance Test (
(a) Representation by a PartyParties may represent themselves in an arbitration held in a United States hearing location. A member of a partnership may represent the partnership; and a bona fide officer of a corporation, trust, or association may represent the corporation, trust, or association.(b) Representation by Others(1) At any stage of an arbitration proceeding held in a United States
(a) Representation by a PartyParties may represent themselves in an arbitration held in a United States hearing location. A member of a partnership may represent the partnership; and a bona fide officer of a corporation, trust, or association may represent the corporation, trust, or association.(b) Representation by Others(1) At any stage of an arbitration proceeding held in a United States
(a) Representation by PartyParties may represent themselves in mediation held in a United States hearing location. A member of a partnership may represent the partnership; and a bona fide officer of a corporation, trust, or association may represent the corporation, trust, or association.(b) Representation by Others(1) At any stage of a mediation proceeding held in a United States hearing
FINRA’s Renewal Program supports the collection and disbursement of fees related to the renewal of broker-dealer (BD) and investment adviser (IA) registrations, exempt reporting and notice filings with participating self-regulatory organizations (SRO) and jurisdictions. During this program, FINRA announces renewal fees BD and IA firms owe via Preliminary Statements issued in November. FINRA publishes Final Statements in January to confirm or reconcile the actual renewal fees BD and IA firms owe after Jan. 1, 2024.
