On January 19, 2023, The Financial Industry Regulatory Authority (FINRA) released its 2023 Examination and Risk Monitoring Program report. This program is designed to ensure that firms in the financial services industry operate according to the rules and regulations set forth by FINRA. The report outlines a comprehensive examination process that includes reviews of firms’ compliance with FINRA rules, risk management practices, and customer protection procedures.
The release of this report has significant implications for the financial services industry. Firms must now be prepared to undergo rigorous examinations by FINRA to remain compliant with all applicable laws and regulations. These examinations will focus on customer protection, risk management, and compliance with FINRA rules. Additionally, firms must be prepared to provide detailed information about their operations to pass these examinations.
The release of this report also signals a shift towards greater transparency in the financial services industry. By requiring firms to provide detailed information about their operations, FINRA is helping to ensure that investors have access to accurate and up-to-date information about the companies they are investing in. In addition, this increased transparency will help protect investors from potential fraud or other unethical practices by providing them with more insight into how their investments are being managed.
Overall, the release of this report is an important step forward for the financial services industry. It will help ensure that firms operate within the law while providing investors greater transparency in managing their investments.