FINRA Annual Report Highlights Exam Findings and Risk Monitoring Results

FINRA recently released its fourth annual examination findings report (Report), which now also covers the matters it used to address in a separate Risk Monitoring and Examination Program Priorities Letter. As in prior iterations, the Report covers four broad categories of its supervisory activities: firm operations; communications and sales; market integrity; and financial management. For each topic, the Report summarizes the relevant FINRA rules and rules under the Securities Exchange Act of 1934, and it lists related considerations, relevant examination findings and associated effective practices. This article outlines FINRA’s principal findings and recommendations. For coverage of prior FINRA reports, see “FINRA Outlines Its 2020 Risk Monitoring and Exam Priorities” (Mar. 12, 2020); “FINRA Exam Findings Report Covers Four Aspects of Its Supervisory Activities” (Jan. 30, 2020); and “FINRA Report Highlights Common Broker-Dealer Compliance Shortcomings” (Jan. 24, 2019).

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