Examination and Risk Monitoring: FINRA 2023 Report
Outline of key risk areas and new topics
January 2023
乐鱼（Leyu）体育官网 Insights.听FINRA鈥檚 Examination and Risk Monitoring Report highlights key areas of 鈥渆xpanded focus鈥� such as Regulation BI and cybersecurity as well as emerging risks (including sanctions evasion) that will likely direct reviews in 2023. Firms should anticipate that examiners will be assessing how well their compliance activities in each of the topic areas align with the information contained in the Report, including: new material, exam findings, effective practices, and 鈥渞elevant considerations.鈥� Member firms are encouraged to also consider FINRA鈥檚 report in concert with similar releases by the SEC on its examination findings and priorities as well as anticipated rulemakings under its 2023 regulatory agenda.
The Financial Industry Regulatory Authority (FINRA) has published its 2023听, providing insights into findings from recent oversight activities under its Member Supervision, Market Regulation, and Enforcement programs (collectively, 鈥渞egulatory operations programs鈥�).
The Report covers twenty-four (24) topics across five (5) key areas (including, i) Financial Crimes, ii) Firm Operations, iii) Communications and Sales, iv) Market Integrity, and v) Financial Management), representing a wider range of topics under these key areas than in previous years鈥� reports, a new section (Financial Crimes), and novel topics within the Market Integrity section. For each topic, FINRA:
- Identifies the relevant topics, rule(s), and/or oversight activities
- Summarizes findings or observations
- Outlines effective practices that FINRA observed through its regulatory operations programs
- Highlights key considerations for firms鈥� compliance programs
An outline of certain key risk areas, emerging risks, and new topics as identified by FINRA follows.听
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Expanded Focus in Key Risk Areas | |
|---|---|
Topics | Relevant 乐鱼（Leyu）体育官网 Thought Leadership |
| Reg BI and Form CRS | Click听here |
| Consolidated Audit Trail (CAT) | Click听here |
| Order Handling, Best Execution, and Conflicts of Interest | Click听here |
| Mobile Apps | Click听here |
| Cybersecurity | Click听here听and听here |
| Complex Products and Options | Click听here听and听here |
Areas of Emerging Risk | |
Topics | Relevant 乐鱼（Leyu）体育官网 Thought Leadership |
Manipulative Trading in small cap IPOs | Click听here听and听here |
Sanctions Evasion | Click听here听and听here |
ACATS (Automated Customer Account Transfer Service) Fraud | Click听here听and听here |
2023 Report 鈥� New Sections and Topics | |
Topics | Relevant 乐鱼（Leyu）体育官网 Thought Leadership |
Financial Crimes | |
Cybersecurity and Technology Governance | Click听here听and听here |
Anti-Money Laundering and Sanctions | Click听here,听here, and听here |
Manipulative Trading | Click听here |
Market Integrity | |
Fair Pricing (Fixed Income) | Click听here听and听here |
Reporting and Order Handling (Fractional Shares) | |
Market Making Exemptions (Regulation SHO) | |
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Please refer to:
- 乐鱼（Leyu）体育官网 Regulatory Alert | SEC Regulatory Agenda
- 乐鱼（Leyu）体育官网 Regulatory Alert | Examination and Risk Monitoring: FINRA 2022 Report
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Examination and Risk Monitoring: FINRA 2023 Report
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