Adaptions and “CliffsNotes” version of FINRA 2018 Priorities. All opinions are my views and do not necessarily reflect FINRA guidance. My recommendations offer proactive advice to address FINRA priorities in anticipation of a FINRA examination, sweep letter or inquiry.
I adjusted the topic structure to emphasize the priorities that I believe are newer, difficult to address or are more timely. I prioritized based on the current federal administration’s focus on reducing regulations, as well as the recent DJIA records.
“There is some laxity coming,” Mr. (Barney) Frank said. “Some bank regulators are probably more willing to trust the banks not to get in trouble. But the rules to prevent them from getting in trouble will still be there.” Trump Leads Deregulatory Charge. Hence, FINRA’s priorities may not be enforced as they were in the past, but the regulations will still be there.
For some, the recent record-setting market highs are beginning to indicate a coming market correction. Seeking Alpha compares the current markets to Alan Greenspan’s “Irrational Exuberance”. The Greatest Bubble Ever. If a significant market correction occurs, market integrity and financial operational rules will be back into focus as they were after the bear market of 2007 – 2009.
Therefore, the order of priorities I’ll discuss in this blog post are: Operational and Financial Risk, Market Integrity, Fraud, Sales Practices, and High-Risk Firms and Brokers.
The themes of the 2018 FINRA priorities are: trend technology, data integrity, cybersecurity, effective controls and cross market surveillance.
Elin is the CEO of Elinphant a financial compliance services firm. Elin ensures compliance officers who serve clients are skilled and knowledgeable in relation to the clients business and needs. Elin is known for looking at compliance challenges as well as marketing and sales in an innovative and direct manner.