FINRA Exam Report: 5 Big Problem Areas for Brokers in 2018
December 8, 2018 by Janet Levaux
The Financial Industry Regulatory Authority released its annual exam findings on Friday, zooming in on improper activity that it wants to stop.
The report lists the areas in which industry players need to do better, based on what FINRA staff has been seeing out in the advisory field: advisors working on accounts and transactions for which they do not have authorization or the authorization had expired, as well as cases of mismarked order tickets, false statements, blank forms and the abuse of trustee status.
The summary also discusses investor suitability, fixed income markup disclosure and due diligence for private placements, as well as findings from a targeted exam (or sweep) tied to with volatility-linked products.
“One of our core priorities is to provide firms with information that will help them more easily comply with rules and regulations, and this report aims to do just that,” according to FINRA CEO Robert Cook. “We hope the observations within the Exam Findings Report enable firms to strengthen their own control environments and address potential deficiencies before their next exam.”
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