Industry Views

The Flaws and Implications of FINRA Culture Reviews

At the beginning of the year, when FINRA released its annual priorities letter, firm culture was set to take center stage for the 2016 year. FINRA laid out a review process more recently so it could have a more formal system for assessing broker-dealer culture. But some finance industry experts aren’t completely on-board with FINRA’s[…]

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What the SEC’s Consolidated Audit Trail (CAT) Means for Small to Mid-Size Broker Dealers

The Securities and Exchange Commission’s journey toward establishing a consolidated audit trail (CAT) is four years in the making, and the regulatory body is waiting for public comment after submitting the project proposal last month. The SEC’s goals of a consolidated audit trail are to help market regulators better understand incidents such as the 2010[…]

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Why the SEC’s Exam Shift Doesn’t Take Broker Dealers Off the Compliance Hook

In February, the Securities and Exchange Commission unveiled its plan to reallocate a portion of its broker examination staff and bolster oversight of registered investment advisors. At first blush, this might seem like a welcome respite for broker dealers – but the shift isn’t that simple. To compensate, the SEC intends to rely more on[…]

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Redefining the Role of Compliance Officers

Within the capital markets, regulations are increasing – and so are compliance-related fines. But alongside growing industry standards, broker dealers are also facing pressure to adopt evolving technology, which can open up the door to new vulnerabilities. Between more stringent regulations and emerging technology adoption, today’s broker dealers can’t afford to shirk on compliance. The[…]

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How a Tailored Approach to Compliance Can Help Broker Dealers Pass FINRA Culture Reviews

Now that the Financial Industry Regulatory Authority (FINRA) is actively reviewing broker dealer culture, firms need to ensure their core values are up to par. But creating a culture of compliance can be challenging in an industry rife with regulatory standards. To bolster overall firm culture, broker dealers need to take a detail-oriented and efficient[…]

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The Fight Against Spoofing Demands a Cultural Shift, Not Just Surveillance

Spoofing has long been a blemish on the capital markets sector’s reputation, but 2015 was the year it became one of regulators’ top public enemies. In November, New York Attorney General Eric Schneiderman launched an investigation into four large brokers, focusing on their alleged use of the manipulative trading tactic. That same month, a Chicago[…]

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