Introduction

The 2026 FINRA Annual Regulatory Oversight Report (the “Report”) provides FINRA member firms (“firms”) with insight into findings from FINRA’s regulatory operations programs. The Report reflects FINRA’s commitment to providing transparency to firms and the public about our regulatory observations and activities.

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 prior Reports by adding new topics denoted NEW FOR 2026 and new material (e.g., new findings, effective practices) to existing sections where appropriate. (New material is in bold type.)

This year’s Report addresses a broad range of content, including a new topic area dedicated to GenAI: Continuing and Emerging Trends.

Additionally, the Report highlights new content on various topics denoted in blue “callout” boxes, including updates on:

• FINRA Forward – Enhancing FINRA’s Capabilities in an Evolving Industry;
• Increase in Small-Cap Fraud Involving Exchange-Listed Equities; and
• Annual Financial Reporting Reminders and Updates for Member Firms.

Please note that the removal of a topic or content from this year’s Report does not indicate that the topic is not of regulatory importance, and you may find it helpful to continue to review those topics and content in the previous Reports as well as other guidance and tools available on FINRA.org.

For each topic area covered, the Report continues to:

• identify the relevant rule(s);
• summarize noteworthy findings from recent oversight activities involving firms;
• outline firms’ effective practices that FINRA observed through its oversight activities; and
• provide additional resources that may be helpful to firms in reviewing their supervisory procedures and controls and fulfilling their compliance obligations.

FINRA welcomes feedback on how we can improve future publications of this Report. Please contact the Office of Strategic Engagement to provide recommendations.

How to Use This Report

We selected the topics in this Report for their interest to the largest number of firms; consequently, they may include areas that are not relevant to an individual firm and omit other areas that are applicable.

FINRA advises each firm to review the Report and consider incorporating relevant elements into its compliance program in a manner tailored to the firm’s activities and applicable regulatory requirements. The Report is intended to be just one of the tools a firm can use to help inform the development and operation of its compliance program; it does not represent a complete inventory of regulatory obligations, compliance considerations, findings, effective practices or topics that FINRA will examine.

FINRA also reminds firms to stay apprised of new or amended laws, rules and regulations, and update their written supervisory procedures (WSPs) and compliance programs in response. Firms may contact their Risk Monitoring Analyst if they have any questions about the findings or effective practices included in this Report.

The Report contains the following, as applicable, for each topic area:

• Regulatory Obligations—A brief description of relevant federal securities laws, regulations and FINRA rules.
• Findings—Select findings from recent reviews, examinations, market surveillance, investigations or enforcement activities involving firms; or such findings from prior Reports that we continue to note in recent oversight activities.
• Effective Practices—Some select firms’ practices that FINRA has observed through our oversight activities, which may help firms in tailoring their compliance programs depending on their business model, size and practice.
• Additional Resources—A list of relevant FINRA Regulatory Notices, other reports, tools and online resources.

The Report also includes an Appendix that outlines how firms have used similar FINRA reports (e.g., Findings Reports, Priorities Letters) in their compliance programs.

As a reminder, the Report—as with our previous Exam and Risk Monitoring Reports, Findings Reports and Priorities Letters—does not create any new legal or regulatory requirements or new interpretations of existing requirements, or relieve firms of any existing obligations under federal securities laws and regulations. Readers should not infer that FINRA requires firms to implement any specific practices described in this Report that extend beyond the requirements of existing federal securities provisions or FINRA rules. Rather, firms may consider the information in this Report in developing new, or modifying existing, compliance practices. Moreover, some content may not be relevant to individual firms based on their business models, size or practices.