To download the full report, click here to go to FINRA’s website. Being aware of these areas will help your firm stay in compliance and out of trouble with FINRA!
Here’s an snippet of the problem areas; however, there are many more and a detailed explanation in the full FINRA report:
Insufficient WSPs (Written Supervisory Procedures) for New or Amended Rules
Limited Supervision and Internal Inspections
Inadequate Supervision of Account Statements, Consolidated Account Reports and Other Forms
Insufficient Supervision for Specific Types of Accounts (Insider, Margin, and Options accounts namely)
Use of Prohibited Digital Channels / Prohibited Electronic Sales Seminars
Inadequate AML Transaction Monitoring / Overreliance on Clearing Firm
Multiple issues with Business Continuity Plans (BCP’s)
Excluding Charges from Mark-Up/Mark-Down Disclosure, Unclear or Inaccurate Labels for Sales Credits or Concessions, Incorrect Prevailing Market Price (PMP) Determinations, Inaccurate Time of Execution, Omitted or Inaccurate Blotter Information
Multiple issues with Net Capital Calculations
Cheers from Sonja Rae @ RIA-CCO, hope you have a wonderful end to your week! 🙂
