FINRA Launches Targeted Exam on Financial Firms’ Crypto Communications

Posted on November 28th, 2022 at 1:33 PM
FINRA Launches Targeted Exam on Financial Firms’ Crypto Communications

The Financial Industry Regulatory Authority (FINRA) has announced a targeted exam probing for more information as to how firms handled retail communications “concerning crypto asset products and services” after FTX recently filed for bankruptcy. 

The targeted exam notice, which was posted on FINRA’s website, defines July 1 through the end of September as the period in question. FINRA announced that it will target nearly 20 firms and request “all retail communications” concerning crypto assets. According to FINRA, a retail communication is “any written (including electronic) communication that is distributed or made available to more than 25 retail investors within any 30 calendar-day period.” Further, the definition applies to video, social media, mobile apps, and websites in addition to written communications. 

Additionally, FINRA asks firms to provide information for each communication, including the initial date that it was disseminated to the public, whether it was filed with FINRA’s Advertising Regulation Department (ARD), and whether a principal at the firm approved the communication. FINRA additionally requests that firms furnish written supervisory procedures relating to the “review, approval, record-keeping and dissemination” of the communications, including any relevant compliance policies or materials. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags:

Return to Archive

TESTIMONIALS

Previous
Next

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

September 5, 2025
Merrill Lynch Advisor Faces FINRA Disciplinary Action for Refusing to Cooperate with Investigation

The Financial Industry Regulatory Authority (FINRA) has initiated disciplinary proceedings against former Merrill Lynch broker Ali F. Chehab of Portland, Oregon. According to ThinkAdvisor, FINRA alleges that he refused to cooperate in an investigation into potential misconduct, including unauthorized trading and material misrepresentati...

September 4, 2025
Wells Fargo Ties $2,000 Bonus to Non-Solicitation Clause, Raising Advisor Concerns

Wells Fargo & Co. recently issued a $2,000 bank-wide award to its 215,000 employees, following the Federal Reserve’s June decision to lift its asset growth restrictions.

September 3, 2025
Kansas City Advisory Firms Agree to $25.5 Million Settlement Over No-Poach Allegations

Mariner Wealth Advisors, along with two other Kansas City-area firms, has agreed to a $25.5 million class action settlement over allegations that they illegally agreed not to solicit each other’s advisors.