On October 16, 2019, the Financial Industry Regulatory Authority (“FINRA”) released its 2019 Report on FINRA Examination Findings and Observations (the “Report”). The Report documents key issues from the examination of FINRA member firms, including “findings”, based on a firm’s violation of Securities and Exchange Commission (“SEC”), FINRA, or other relevant rules, and “observations”, suggestions as to how a firm can address perceived weaknesses that may elevate risk but may not rise to the level of a rule violation.
The Report addresses findings and observations relating to the following categories: (1) Sales Practice and Supervision, (2) Firm Operations, (3) Market Integrity, and (4) Financial Management. Each of the four categories is split into sub-issues where FINRA details its findings and observations.
