FINRA Publishes 2021 Report on FINRA’s Examination and Risk Monitoring Program

On February 1, 2021, FINRA published the first annual 2021 Report on FINRA’s Examination and Risk Monitoring Program (the “Report”), which combines and replaces two previously published FINRA annual reports: the Report on Examination Findings and Observations and the Risk Monitoring and Examination Program Priorities Letter.

The Report includes discussion of certain “Emerging Risks”, which represent potentially concerning practices that FINRA has observed and that may be examined by FINRA in more detail going forward.

The Report also identifies several areas of regulatory focus for 2021, including:

  • Regulation Best Interest and Form CRS;
  • Consolidated Audit Trail compliance;
  • Cybersecurity;
  • Communications with the Public;
  • Best Execution;
  • Variable Annuities; and
  • Anti-Money Laundering

2021 Report on FINRA’s Examination and Risk Monitoring Program