2024 Office of the Ombuds Report

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I am often asked, what is an ombuds? An ombuds is a person who assists others with conflicts or concerns. FINRA’s Office of the Ombuds helps our constituents—investors, the broker-dealer industry, FINRA staff, and other FINRA stakeholders—with any concerns of potentially unfair FINRA practices or treatment. We also answer questions and help people navigate FINRA.

In this report, we address our role, why constituents contact us, how we help them, and who contacts us. In 2024, constituents raised a variety of topics. Investor-related topics ranged from fraudulent schemes to FINRA's handling of investor complaints and arbitrations. Industry-related topics included concerns about regulatory and disciplinary matters, qualification examinations, and disclosures. In addition, FINRA employees raised individual concerns about FINRA processes that impact them. As discussed in this report, when we learn about concerns, we evaluate them and, when appropriate, help to clarify matters or address issues.

FINRA’s ombuds team is willing and ready to listen, provide guidance, support positive change, and share feedback with management. We hope you find this report informative. Please contact us if you have questions, feedback, or seek our assistance.

Sincerely,

Sarah Gill
FINRA Ombuds

Mission and Role

Our mission is to provide a forum for individuals who interact with FINRA to voice concerns of potentially unfair FINRA practices or treatment.

As an independent, neutral, confidential, and informal source of assistance, the Office of the Ombuds addresses concerns—whether anonymous or not—about operations, enforcement, or other activities of FINRA and its employees. We also answer questions and help people navigate FINRA.

What is FINRA’s Office of the Ombuds?

Independent
We report directly to the Audit and Risk Committee of FINRA’s Board of Governors. We are not part of the management of FINRA.

Neutral
Our role is to advocate for fair FINRA processes and fair administration of those processes. We do not take sides. We do not advocate on behalf of any individual or FINRA.

Confidential
We take reasonable steps to safeguard the confidentiality of your identity and communications with us. Exceptions include imminent risk of serious harm and legal requirements.

Informal
We do not make business or policy decisions for FINRA or participate in formal processes such as disciplinary or personnel actions. We assist parties in identifying and evaluating options to address their concerns.

How can the Office of the Ombuds help you?

We can assist you if you interact with FINRA and:

• You have concerns of potentially unfair practices or treatment.
• You have questions regarding navigating FINRA.
• You seek guidance about available options.
• You seek anonymity in raising concerns.

Addressing Stakeholder Concerns and Offering Solutions

FINRA’s Office of the Ombuds provides a critical resource for FINRA stakeholders and can be a source of insight and guidance. The questions and concerns we hear often provide early warning signs for emerging issues. We share—in a manner that protects confidentiality when requested—issues and concerns to inform the organization of potential opportunities for improvement. When appropriate, we offer recommendations that may include changes to procedures, policies, and FINRA rules. The following are examples of topics we addressed in 2024.

Fraud Prevention
In 2024, we helped individuals who contacted us about fraudulent schemes. Some of the schemes were imposter scams that involved people fraudulently pretending to be FINRA staff to obtain account or other sensitive information. Others were advance fee schemes in which investors were told they must pay a fee in advance to redeem their funds. We answered questions about the fraudulent activity, shared educational resources, provided information to regulatory staff, and took other steps as necessary.

Regulatory and Disciplinary Matters
The Office of the Ombuds received concerns about regulatory examinations, investigations, and disciplinary matters. Some concerns related to communication challenges, lack of transparency, or application of FINRA rules. Other concerns pertained to the impact of disciplinary actions and disclosures. We were able to assist by conducting reviews and facilitating communication. When appropriate, we shared with management recommendations and opportunities to improve processes.

FINRA Rules
Our constituents raised concerns about the impact of FINRA rules, such as the rules pertaining to pattern day trading, gifts, and remote supervision. We shared this feedback with management for consideration in future rulemaking.

What does the Office of the Ombuds NOT do?

• The Office of the Ombuds is neutral, so we do not take sides.
• We cannot make FINRA management decisions or policy, though we can offer recommendations to management.
• We are not the FINRA team that handles investigations of customer complaints about broker-dealers and their associated persons.
  • Please file such complaints with FINRA here.
  • Visit this page to file a tip about potentially fraudulent, illegal, or unethical activity relating to financial services.
• We cannot provide confidential regulatory information, such as the outcome of regulatory investigations.
• We do not replace existing FINRA processes or programs.
  • Unless doing so is not feasible, before contacting us with a concern, we ask that you raise your concern with the relevant FINRA department or follow any established process. We are available to help you identify such options.
• We cannot handle matters outside the scope of FINRA’s jurisdiction.

Who contacts the Office of the Ombuds?

Of the people who contacted us in 2024:

Contact the Ombuds team when you want to raise an issue and you:

• Seek confidentiality or anonymity.
• Seek assistance that is neutral.
• Want to speak with someone independent from FINRA’s regulatory role.

You can contact us anonymously or confidentially. 

Submit Online here.

Please provide feedback about our assistance by taking this brief anonymous survey: www.surveymonkey.com/s/FINRAOmbuds