FINRA OUTLINES EXAM PRIORITIES
In a recent podcast, FINRA laid out its examination priorities. The priorities include some topics of recent interest: protecting senior investors (e.g. sales practices, suitability, “education seminars”), deferred variable annuities (compliance with Rule 2821), suitability analysis of new products (e.g. structured products), valuation of securities inventory, and the accuracy of data and transaction reports filed with FINRA. The exam priorities also include some long-time FINRA favorites: AML, Regulation S-P, supervision, BCP, and cash sweep disclosures.
OUR TAKE: FINRA tries to be as transparent as possible with its exam program. Expect your next exam to focus on these areas and be prepared.