The 2022 Report on FINRA’s Examination and Risk Monitoring Program (the Report) provides firms with information that may help inform their compliance programs. For each topical area covered, the Report identifies the relevant rule(s), highlights key considerations for member firms’ compliance programs1, summarizes noteworthy findings from recent examinations, outlines effective practices that FINRA observed during its oversight, and provides additional resources that may be helpful to member firms in reviewing their supervisory procedures and controls and fulfilling their compliance obligations.
FINRA’s intent is that the Report be an up-to-date, evolving resource or library of information for firms. To that end, the Report builds on the structure and content in the 2021 Report by adding new topics (e.g., Disclosure of Order Routing Information, Funding Portals) denoted NEW FOR 2022 and new material (e.g., new exam findings, effective practices) to existing sections where appropriate. (New material in existing sections is in bold type.) In addition, those general findings that are also particularly relevant for firms in their first year of operation are denoted with a star ().
As always, FINRA welcomes feedback on how we can improve future publications of this Report. Please contact Steve Polansky, Senior Director, Member Supervision at (202) 728-8331 or by email; or Rory Hatfield, Associate Principal Research Analyst, Member Supervision at (240) 386-5487 or by email.
TABLE OF CONTENTS
- Firm Operations
- Anti-Money Laundering
- Cybersecurity and Technology Governance
- Outside Business Activities and Private Securities Transactions
- Books and Records
- Regulatory Events Reporting
- Firm Short Positions and Fails-to-Receive in Municipal Securities NEW FOR 2022
- Trusted Contact Persons NEW FOR 2022
- Funding Portals and Crowdfunding Offerings NEW FOR 2022
- Market Integrity
- Financial Management
1 “Related Considerations” are intended to serve as a possible starting point in considering a firm’s compliance program related to a topic. Firms should review relevant rules to understand the full scope of their obligations.