The 2024 FINRA Annual Regulatory Oversight Report (the Report) provides member firms with insight into findings from FINRA’s Member Supervision, Market Regulation and Enforcement programs (collectively, “regulatory operations programs”). The Report reflects FINRA’s commitment to providing greater transparency to member firms and the public about our regulatory activities.
The 2021-2023 versions of the Report were published under its previous title (i.e., Report on FINRA’s Examination and Risk Monitoring Program). The new title represents FINRA’s ongoing efforts to increase both the integration among our regulatory operations programs and the utility of the Report for member firms as an information source they can use to strengthen their compliance programs.
As in the 2021-2023 Reports, this year’s Report addresses a broad range of topics. Notably, the Report introduces new content dedicated to crypto assets; new topics within the Market Integrity section (e.g., OTC Quotations in Fixed Income Securities, Advertised Volume); information related to artificial intelligence’s potential impact on firms’ regulatory obligations; and guidance concerning firms’ supervision and retention of off-channel communications.1
Additionally, for each topical area covered, the Report continues to:
- identify the relevant rule(s);
- highlight key considerations for member firms’ compliance programs;2
- summarize noteworthy findings or observations from recent oversight activities;
- outline effective practices that FINRA observed through its oversight activities; and
- provide 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 member firms. To that end, the Report builds on the structure and content in the 2021-2023 Reports by adding new topics denoted NEW FOR 2024 and new material (e.g., new findings, effective practices) to existing sections where appropriate. (New material in existing sections is in bold type.)
As always, FINRA welcomes feedback on how we can improve future publications of this Report. Please contact the FINRA Office of Strategic Engagement to provide recommendations.
TABLE OF CONTENTS
- Financial Crimes
- Crypto Asset Developments NEW FOR 2024
- Firm Operations
- Communications and Sales
- Market Integrity
- Financial Management
- Appendix – Using FINRA Reports in Your Firm’s Compliance Program
1 In general, the term “off-channel communications” refers to business-related messages sent and received through applications on personal devices or through other platforms outside of the member firm’s control, including using personal email, chats, or text-messaging applications for business purposes.
2 “Related Considerations” are intended to serve firms in designing or strengthening their compliance programs related to a topic. Firms should review relevant rules to understand the full scope of their obligations.