Finra Unscripted

As of June 30, 2020, the U.S. Securities and Exchange Commission’s Regulation Best Interest—or Reg BI—is officially in effect. That means brokerage firms now have to comply with a new standard of conduct when working with retail clients.On this episode we talk to Meredith Cordisco and Jim Wrona of FINRA’s Office of General Counsel about what a post implementation date world looks like for FINRA member firms and what FINRA has been doing to train staff to ensure a consistent approach to examining around and enforcing the new rule across the organization.And listen to the end for a special surprise from Jim. Resources mentioned in this episode:SEC Reg BI Resource PageFINRA Reg BI Resource PageVirtual Conference Panel: Reg BI and Form CRS: Where Are We NowVirtual Conference Panel: Reg BI: Compliance Inspections and ExaminationsEmail questions: IABDquestions@sec.gov

You can't talk about investor protection without talking about senior investors, according to Chris Kelly, deputy head of FINRA Enforcement and head of Main Enforcement and Sales Practice Enforcement. In recent years, there has been a substantial increase in the number of cases involving the exploitation of senior investors and the results are often devastating, especially for seniors who may be out of the workforce and living on a fixed income. That’s why protecting senior investors is a priority for FINRA Enforcement. On this episode, Kelly shares how FINRA is working to protect this segment of the population and what firms can do to work with FINRA in this important effort.Resources mentioned in this episode:Episode 57: Securities Helpline for Seniors: Celebrating 5 Years Episode 59: Protecting Investors and Markets in Good Times and BadRegulatory Notice 19-36Under the Radar: New York State Elder Abuse Prevalence StudyCFPB: Suspicious Activity Reports on Elder Financial Exploitation

The COVID-19 pandemic is unlike any other crisis in recent history, and that presents an opportunity to criminals who are flexible and adaptable. That means firms and regulators must be flexible and adaptable too. In his first week on the job, Greg Ruppert, the new head of the National Cause and Financial Crimes Detection Programs (NCFC), created a COVID-19 Task Force to help FINRA tackle emerging issues to quickly protect investors and to maintain the integrity of our markets.On this episode, Greg joins us to tell us more about the task force, how firms can identify, detect and mitigate emerging threats and the importance of adopting a “one team, one fight” approach. Resources mentioned in this episode:Episode 60: Introducing Greg Ruppert and the NCFCCOVID-19 Resource PageFraud and Your Investment Accounts During COVID-19 PandemicRegulatory Notice 20-13Virtual Conference Panels

Between the level of interconnectedness on the web and the sheer about of data available, we’re living in an era ripe for the perpetration of financial fraud. That makes it more important than ever for FINRA to have a holistic view of emerging trends and risks—and the ability to coordinate closely with other regulators and law enforcement. FINRA’s new National Cause and Financial Crimes Detection Programs (NCFC) aims to be the nerve center to do just that. On this episode, we meet Greg Ruppert, the new Executive Vice President of the NCFC, to hear about his background and his vision for the new team.Resources mentioned in this episode:Episode 57: Securities Helpline for Seniors: Celebrating 5 Years of Senior Investor ProtectionEpisode 33: Beyond Hollywood: Money Laundering in the Securities IndustryEpisode 31: FINRA’s Point Guard: The Central Review GroupEpisode 23: Insider Trading: Finding the Needle in the Haystack

FINRA Enforcement works on the front lines of investor protection—not just now, as some look to take advantage of these uncertain time to defraud investors or manipulate the markets – but always. On this episode, we meet Jessica Hopper, FINRA’s new Executive Vice President and Head of Enforcement, to hear what her team is doing today, and every day, to prevent investor harm and to maintain the integrity of our markets. Plus, we hear what keeps Jessica motivated to do what she does. Resources mentioned in this episode:Episode 9: Introducing FINRA’s New Enforcement TeamMonthly Disciplinary ActionsIndividuals Barred by FINRA

Market volatility in recent weeks has surpassed anything else in history in terms of both the extremity and duration. Despite that, the so-called plumbing of U.S. financial markets has held up remarkably well—even with most market participants working from home. On this episode, we talk to FINRA’s Executive Vice President of Market Regulation and Transparency Services Tom Gira, who walks us through the evolution of our market structure that has contributed to this resilience and how FINRA and others are handling the increased volumes. Resources mentioned in this episode:COVID-19 Resource PageCOVID-19 FAQsEpisode 13: How the Cloud and Machine Learning Have Transformed FINRA Market Surveillance

With about 10,000 Americans reaching 65 years old every day, FINRA is committed to the protection of senior investors and other vulnerable adults. That’s why FINRA launched the Securities Helpline for Seniors. Senior Helpline’s managers Brooke Hickman and Rob Mascio explain how the Helpline has developed not just as a resource for seniors, but as a resource for broker-dealers as well. On this episode, we celebrate the five-year anniversary of the Senior Helpline’s launch with a look at how the Helpline has helped senior investors, notable trends and themes and how the Helpline has evolved over the last five years. Resources mentioned in this episode:Protecting Senior InvestorsRegulatory Notice 19-36Toll-Free Number: 844-57-HELPS or 844-574-3577

The new coronavirus that causes COVID-19 has rapidly changed the way U.S. broker-dealers must conduct business as states implement various shelter-in-place and stay-at-home orders, forcing workers remote. The shift has a number of implications when it comes to business continuity plans, the security of firm’s networks and the ability to comply with various rules and requirements. On this episode, our first to be remotely recorded, we talk to FINRA’s Chief Legal Officer Bob Colby and Head of Member Supervision Bari Havlik to learn what FINRA expects at this time and how firms—and FINRA—are adapting to the current situation.Resources mentioned in this episode:Regulatory Notice 20-08: Pandemic-Related Business Continuity Planning, Guidance and Regulatory ReliefRule 4370: BCPs and Emergency Contact InformationCOVID-19 Resource PageCOVID-19 FAQsCybersecurity Alert: Measures to Consider as Firms Respond to the Coronavirus Pandemic

Want to be a broker-dealer firm and conduct securities transactions in the U.S.? First, the firm and individuals need to register with FINRA, and that means working with FINRA’s Membership Application Program (MAP) Group. The MAP Group is the gatekeeper to the broker-dealer industry. It works both to protect investors by ensuring would-be firms meet FINRA’s standards of admission and to help new and existing firms grow and evolve, ensuring a vibrant market for all. On this episode, we talk to Lisa Robinson, senior director of FINRA’s MAP Group within the Member Supervision team, to learn more. Resources mentioned in this episode:Register a Broker DealerFINRA’s Standards of AdmissionMateriality ConsultationRegulatory Notice 18-23Episode 16: How FINRA Rules Get Made (And Reviewed)

The biggest change to the Continuing Education program in 25 years is underway. The CE Council, FINRA and other CE Council members are working together to improve continuing education for broker dealers with a number of proposed changes, including moving to an annual CE requirement, working to reduce duplication between the firm and regulatory elements of continuing education and providing those who leave the industry a means of maintaining their qualification.On this episode, we hear both the firm and regulatory perspective from our guests, Jeff Freiburger, Chief Compliance Officer at Robert W. Baird and member of the CE Council, and John Kalohn, Senior Advisor to Registration and Disclosure at FINRA. Resources mentioned in this episode:Regulatory Notice 20-05 (Comments Due: April 20, 2020) Letter from the 2019 Council ChairCE CouncilKey Topics: Continuing Education

It can be a big decision for retail investors to decide how and where to invest their hard-earned cash. After all, their savings are on the line. It’s important that when making this big decision investors understand the risks—not just the hype. That’s where FINRA’s Advertising Regulation Group comes in, overseeing broker-dealer communications to ensure that they are fair, balanced and not misleading. On this episode, we talk to Amy Sochard, senior director of FINRA’s Advertising Regulation Group within the Office of General Counsel, to learn more.Resources mentioned in this episode:Advertising Regulation Topic PageRule 2210: Communications with the PublicRegulatory Notice 19-31: Disclosure Innovations in Advertising and Other Communications with the Public

This episode originally aired in December 2018.When it comes to detecting insider trading, it really is like finding a needle in a haystack with more than 15,000 different stocks, options and bonds trading every day across millions of transactions. Yet, Sam Draddy and the Insider Surveillance team in the Office of Fraud Detection and Market Intelligence manage to find those needles.The Insider Surveillance team does it by combining a lot of data—20 years’ worth of data on thousands of actively traded bonds, stocks and equity options—with a mix of sophisticated surveillance technology and good old-fashioned detective work.On this episode of FINRA Unscripted Sam Draddy walks us through the process. Plus, he shares details of some of the most interesting cases of his career and attempts to answer the real question: why do people do it?Resources mentioned in this episode:SEC’s Edgar DatabasePro Golfer Agrees to Repay Trading ProfitsSEC’s Perk Hixon CaseDid Somebody Just Eat a Post-It?

How many Americans are investing in non-retirement accounts? How are they making decisions about where to put that hard-earned cash? How much do they truly understand about investing? And how has this all changed over time?The FINRA Foundation’s latest study, Investors in the United States 2019, looks to uncover the answers to these questions and more to get a pulse on the investing habits of AmericansOn this episode of FINRA Unscripted, Gerri Walsh, president of the FINRA Foundation and senior vice president of Investor Education at FINRA, and Gary Mottola, director of research at the FINRA Foundation, tell us more.Resources mentioned in this episode:Investors in the United States 20192018 National Financial Capability Study38: Financial Capability Study, Part I: Does a Rising Tide Lift All Boats? FINRA FoundationInvestor Knowledge Quiz

The 1920s was a period of great change and transition and the 2020s are shaping up to be the same—at least for FINRA’s Examination and Risk Monitoring program.We’re kicking off the new Roaring 20s with three members of the Member Supervision senior leadership team to learn what to expect from the Examination and Risk Monitoring program in the year ahead.On this episode of FINRA Unscripted, Ornella Bergeron, senior vice president of the carrying and clearing and diversified firm groups; Tom Nelli, senior vice president of exams and standards; and Bill St. Louis, senior vice president of the retail and capital markets firm groups, join us to tell us more.Resources mentioned in this episode:Episode 49: A Career Highlight: Exam and Risk Monitoring Program Transformation UpdateEpisode 45: Regulation Best Interest: Preparing for a New Standard of ConductFINRA Announces Senior Leadership Team Under New Examination and Risk Monitoring Program StructureFINRA Examination Program ImprovementsA Few Minutes with FINRA: Cr

In 2018, FINRA embarked on a large-scale transformation of its examination and risk monitoring program to make FINRA a more effective, agile and risk-focused regulator. A lot of progress has been made in the last year. The group is in the process of realigning around the business models of FINRA member firms, introducing a new single point of accountability and installing a new senior leadership team.On this episode of FINRA Unscripted, Bari Havlik, Executive Vice President of Member Supervision, tells us more. Resources mentioned in this episode:Episode 21: Introducing Bari HavlikFINRA Examination Program ImprovementsA Few Minutes with FINRA: Creating a Single, Unified Examination Program

This episode originally aired in August 2018. Schoolhouse Rock taught us how a bill up on Capitol Hill becomes law. Unfortunately, they never got around to explaining how a FINRA rule proposal becomes regulation.In this episode, Phil Shaikun from FINRA’s Office of General Counsel and Jonathan Sokobin, FINRA’s Chief Economist, fill that gap and explain how lawyers and economists are working together to ensure FINRA’s rules are as effective and as tailored as possible.Plus, Shaikun and Sokobin give an inside look into how the FINRA Retrospective Rule Review process works, how rules are selected for review and the myriad of possible outcomes.Resources mentioned in this episode:Retrospective Rule ReviewSEC Federal RegisterFINRA Advisory CommitteesSpecial Notice on EngagementRegulatory Notice on Membership Application ProcessRegulatory Notice and Comments on Outside Business Activities

Hackathons aren’t new. Silicon Valley has been using them for years and they’ve become commonplace among technologists. But what about a Buildathon?On this episode of FINRA Unscripted recorded at the first ever Buildathon in Boston, we hear from three leaders who pulled together a unique collaboration between FINRA, the private sector and academia. They discuss FinTech and the investor literacy landscape, how this event is different from other hackathons and why cross-sector partnerships can lead to better technology solutions.Joining us on this episode are: Kevin McGovern, managing partner of Deloitte’s New England office; Charles Senatore, senior advisor at Fidelity Investments' Devonshire Investors unit; and Haimera Workie, the head of FINRA’s Office of Financial Innovation.The Buildathon, part of FINRA’s Innovation Outreach Initiative, challenged some of the world’s best technology students at MIT and Harvard to solve common problems faced by everyday investors. On this episode, we learn more.Resources me

The way Americans think about and plan for retirement is changing. Gone are the days when Americas drop out of the workforce at 65 and hit the golf course, according to the University of Pennsylvania Wharton School’s Dr. Olivia S. Mitchell, the 2019 recipient of the Ketchum Prize. Sitting at home for 30 years or longer simply isn’t financially viable anymore. Dr. Mitchell’s research into the evolving world of retirement security earned her the 2019 Ketchum Prize, the FINRA Foundation’s highest honor, which looks to recognizes outstanding service and research to advance investor protection and financial capability in the U.S.On this episode of FINRA Unscripted, Dr. Mitchell walks us through her research into everything from pensions, Social Security, annuities and more, and discusses how the issues have changed – and what Americans can do about it. Resources mentioned in this episode:FINRA Foundation Awards 2019 Ketchum PrizeDr. Mitchell’s Latest ResearchKnowledge@Wharton High SchoolFollow Dr. Mitchell on Twit

Next year, brokerage firms will have to comply with a new standard of conduct when working with retail clients with the implementation of the U.S. Securities and Exchange Commission’s new Regulation Best Interest. If you haven’t yet had time to comb through the 1,363 page rule package, on this episode we have FINRA’s Chief Legal Officer Bob Colby walk us through the rule and steps FINRA member firms will need to take to prepare for its implementation. Resources mentioned in this episode:SEC Small Entity Compliance GuideFINRA Reg BI Resource PageReg BI and Form CRS ChecklistRegulation Best Interest Conference

What happens if a brokerage firm doesn’t report trading information appropriately? At first, it might seem like it isn’t a big deal – just a data issue. But is vital. Accurate market data is at the foundation of FINRA’s efforts to ensure the integrity of our markets.On this episode of FINRA Unscripted, we are joined by Lizzie Hogan, senior vice president of Market Regulation Enforcement, to learn what her group does, how it fits under the broader Enforcement team umbrella and why market data cases matter.Resources mentioned in this episode:FINRA Enforcement Group StructureEpisode 9: Introducing FINRA’s New Enforcement TeamDisciplinary Actions Online