FINRA consolidates Its Examination Functions

Posted on December 16th, 2019 at 2:16 PM
FINRA consolidates Its Examination Functions

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Financial Industry Regulatory Authority ("FINRA") has merged its examination operations and will review brokerages based on their business models next year. 

According to a recent Investment News article, FINRA has unified three examination functions, including business conduct, financial, and trading compliance, into one program. The new structure grouped FINRA member firms into one of five main business models: retail, capital markets, carrying and clearing, trading and execution, and diversified under the new structure. Also, FINRA will assign a staff member to serve as its single point of accountability for risk monitoring and examinations for each FINRA member firm. 

Bari Havlik, FINRA Executive Vice President for member supervision, said that "Implementing a unified program structure will help make us a more agile and risk-focused regulator, able to direct our expertise and resources in a more tailored way in the statement." He added that "As a result, we expect to continue to become more effective at examining firms for compliance and protecting investors."

FINRA began the consolidation of its examination program last October. The effort stems from the FINRA 360 self-review initiative launched in 2017 by FINRA CEO Robert W. Cook.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today. 

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, finra, bari havlik, finra 360

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