Regulatory Outlook | 07.09.20
FINRA Officials Delineate "Good Faith" Efforts to Comply with Reg BI
On a podcast posted on its website Tuesday, FINRA detailed what initial examinations of financial firms' compliance with Regulation Best Interest (Reg BI) will look for. “By and large, we're going to be looking at the compliance obligations of policies, procedures and training, and we're not looking at it to say, 'Did a firm do everything the way that we would have done it?' or 'Did they do everything perfectly?'” Jim Wrona, FINRA vice president and associate general counsel, said on the podcast. “We're looking to see do they understand the obligations, and do they make a good faith effort to implement the changes that needed to be made and incorporate those in their policies, procedures and training.” During an interview Tuesday with Financial Services Institute CEO Dale Brown, FINRA chief Robert W. Cook similarly said, “Our main focus is going to be on good faith efforts to comply with the compliance obligation.”
Read the full article on InvestmentNews.