This simple process guarantees the transparency that investors deserve, allowing for basic protections in the marketplace. Registered securities firms and brokers commit to these regulations to protect investors from a variety of compliance breaches, including:
- Insider trading
- Market manipulation
- Intentionally misleading advertising
It’s estimated that FINRA oversees more than 50 billion transactions every day, and highly sophisticated technology is necessary to protect the information involved and detect violations. It’s this technology on which FINRA, broker-dealers, and investors alike rely on to support the data volume and automation processes in an efficient and cost-effective method.
Are You Compliant?
FINRA and sophisticated technology, like countless surveillance algorithms in order to detect compliance breaches, protecting investors. Here are important considerations to ensure compliance:
1. FINRA Rules – Are you up to date on the latest rules and regulations? This is the first step in any compliance audit, including awareness of new rules and changes to existing rules.
2. Recent Notices – FINRA publishes notices throughout the year, including Regulatory, Trade Reporting, and Election Notices on issues affecting securities firms.
3. Violations, Filings, and Guidance – Rule proposals and filings, and industry violations are important considerations for any FINRA compliance review. Learning from the mistakes of others is the fastest way to learn a lesson and avoid making the same mistakes.
The FINRA compliance process is a challenging web and one in which securities firms and dealer-brokers cannot afford to get tangled. Nexus IT Consultants offers a wealth of experience and knowledge for FINRA rules, specializing in bringing convenience and value to firms in need of compliance consultants.