FINRA Publishes 2019 Examination Findings Report

On October 16, 2019, FINRA published its 2019 Report on Examination Findings and Observations (the “2019 Report”). FINRA first published the report in 2017. The Report lists FINRA’s examination findings and observations for the current year.

As a new feature, in the 2019 Report FINRA distinguishes between its “findings” of rule and regulation violations and its “observations” regarding ways in which firms might improve their control environments to address “perceived weaknesses” and institute “effective practices.”

The 2019 Report addressed the following major areas:

• Sales Practice and Supervision
• Market Integrity
• Firm Operations
• Financial Management

These areas are further broken down into more specific topics such as Supervision, Net Capital, and Best Execution.

For each of these topics, FINRA provides information on:

• regulatory obligations,
• noteworthy exam findings, and
• additional resources.

ACA Guidance

The information on additional resources is a new element in the 2019 Report. It offers useful links to items such as regulatory notices, topic pages on FINRA’s website, and FAQs. The 2019 Report also provides effective practices to consider.

For More Information

In its press release for the 2019 Report, FINRA stated that it publishes these findings and observations as part of its ongoing efforts to help member firms strengthen their compliance programs. Firms should review the 2019 Report to identify areas that may impact their current procedures and practices.

For more information on the 2019 Report, please contact your ACA consultant or Dee Stafford.