Alexa

BANKING AND INSURANCE

The Financial Industry Regulatory Authority, Inc. is insisting smaller firms to start their compliance effort

The Financial Industry Regulatory Authority, Inc. is insisting smaller firms to start their compliance effort
The Siliconreview
19 Decemebr, 2019

The Financial Industry Regulatory Authority, Inc. (FINRA) recently held a conference and it was indicated that less than half of the brokers who attended the event are yet to begin their compliance effort. The industry insiders and regulators are rooting for the companies to get serious about their compliance approach. Vice president and associate general counsel at FINRA James Wrona stated that the talks regarding compliance are not too early and they shouldn’t wait for May 2020 to start having the conversation. The leader of the firm must talk to their clearing firm and also with third party vendors to see what kind of plan they are willing to do.

SEC’s release has hundreds of pages of guidance and to form compliance strategy based on that can be an overwhelming task. Divide and conquer strategy will not work for smaller companies and it is recommended for them to take technology initiatives. Companies must build a timeline and work around it this will give them a feeling of having a plan. Firms are expected not to heavily rely on Form CRS and in the initial meeting the firm must give a generalized description of their firm’s operation. The SEC is looking forward to seeing how firms are going to respond to the rule once it takes effect.