09.06.24

FINRA Will Continue 'Thematic' Advisor Exams

by: Tracey Longo

The Financial Industry Regulatory Agency (FINRA) will continue with the “thematic exams” that helped it take enforcement actions against broker-dealers that use off-channel communications such as WhatsApp, according to John Marino, vice president for firm group examinations. Thematic exams were introduced last year. FINRA is sharing exam findings with the U.S. Securities and Exchange Commission, which recently brought charges against 26 firms for personal communications violations that were settled with $390 million in penalties. Beyond uncovering compliance issues with firms’ use of off-channel communications, thematic exams are now focused on a lack of supervision over key functions, including wire movements, financial reporting, supervisory controls, improper access to customers’ bank accounts, accounting and expanse-sharing arrangements, said Marino during a Sept. 3 FINRA podcast.

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