Finra Unscripted

It’s easy for any company to get caught up in the status quo, too busy focusing on the challenges of today to anticipate the challenges of tomorrow. The Createathon, FINRA’s take on a hackathon, looks to prevent that by allowing employees across the organization a chance to step away from their day jobs to think differently.On this episode, we speak to two members of FINRA’s Technology team to hear how the Createathon keeps FINRA innovating and helps break down silos across the organization. Then, we talk to the winning team of the 2019 Createathon to hear about their idea and what the event means to them.Resources mentioned in this episode:FINRA Open SourceFINRA Technology

From Ireland to Malta to Colombia, foreign markets are global, so too must be FINRA’s presence. That’s where the International Group comes in as FINRA’s central point of contact for relations with foreign regulators. On this episode, we talk to FINRA’s ambassador abroad, Gloria Dalton, to hear how the group supports FINRA in seeking and sharing information, raises awareness of FINRA’s regulatory programs and contributes to the development of global securities regulation and policy. Resources mentioned in this episode: SEC Office of International Affairs Episode 10: ERI: Introducing FINRA’s Weatherman Episode 27: The Future of RegTech

Corporate culture is defined as the way people act. But what helps people understand how to act, how to behave and how to make decisions? That’s the organization’s values. To shape the FINRA of the future, this year FINRA introduced four new corporate values—collaboration, expertise, innovation and responsibility. On this episode of FINRA Unscripted, we learn why values matter, the challenges involved with introducing new organizational values and how FINRA hopes these new values will help drive the organization forward.

Extraordinary,* adjective*, very unusual or remarkable. But what does that really mean when it comes to FINRA members, both firms and individual registered representatives alike, looking to receive credit for cooperating on FINRA enforcement matters? On this episode, Susan Schroeder, executive vice president and head of FINRA Enforcement, joins us to discuss new guidance on credit for extraordinary cooperation and to dig into what kind of cooperation is expected and what is considered by FINRA Enforcement. Plus, we hear how FINRA will work to provide more transparency around credit for extraordinary cooperation going forward. Resources mentioned in this episode: Regulatory Notice 19-23: Updated Guidance on Credit for Extraordinary Cooperation Regulatory Notice 08-70: Guidance on Credit for Extraordinary Cooperation Episode 14: Enforcement Guiding Principals Rule 4530: Reporting Requirements

How many Americans participate in the gig economy? Do you regret paying what you did for college? Would you avoid a medical service due to its cost? The economic concerns of Americans shift over time. That’s why the FINRA Foundation Financial Capability Study is always asking new questions to get a pulse on recent changes to American financial capability and well-being. On this episode of FINRA Unscripted, the second part of our two-part series on the 2018 Financial Capability Study, we dig into these questions and emerging trends and more. Resources mentioned in this episode: 2018 National Financial Capability Study FINRA Foundation NFCS Financial Literacy Quiz

The U.S. economy is improving, but not all Americans are benefiting equally. Many Americans are failing to save money, struggling with student loan debt and facing decreasing financial literacy, according to the new FINRA Foundation Financial Capability Study. On this episode of FINRA Unscripted, the first of a two-part series, Gerri Walsh and Gary Mottola of the FINRA Foundation join us to delve into the study results and their implications for researchers, policymakers, advocates and more. Resources mentioned in this episode: 2018 National Financial Capability Study FINRA Foundation Episode 19: Debunked: 7 Myths about Millennials

Every day, FINRA processes roughly 66.7 billion market events. This includes stock orders, modifications, cancellations and trades from the moment orders are placed, as they move through the markets and are executed. And FINRA not only processes a massive amount of data each day, but also must analyze it to uncover misconduct. How does FINRA surveille this enormous volume of data to find instances of abusive activity? With exceedingly sophisticated technology and highly adept analysts in FINRA’s Market Regulation and Transparency Services group. Today we sit down with Tom Gira the head of the department and a 25-year veteran of FINRA. Tom explains how FINRA’s use of technology, specifically the cloud and machine learning, has improved FINRA’s quality of regulation, furthering the organization’s mission of market integrity and investor protection. This episode originally aired in July 2018. Resources mentioned in this episode: Options Clearing Corporation FINRA Market Regulation FINRA Ad Hoc Committees 12: H

FINRA is in the middle of a wide-ranging, multi-year effort to revolutionize the digital experience that firms have when interacting with FINRA. The Digital Experience Transformation (DXT) is a transformation driven by firms for firms. The initiative is focusing on six solution areas that have been identified as priorities by FINRA member firms, including a simplified user experience and flexibility and automation when it comes to user-defined access to FINRA data. On this episode of FINRA Unscripted, two members of FINRA’s Technology team tell us how this project can enhance compliance and reduce costs for member firms. Resources mentioned in this episode: DXT Website Episode 29: CRD Transformation

The Annual Conference in Washington, DC, is FINRA's premier event, bringing together practitioners, peers and regulators to exchange ideas on compliance and regulatory topics and trends. On this episode of FINRA Unscripted, we take you behind the scenes of this year’s event to listen in on the first session of the three-day event: a fireside chat with FINRA’s President and Chief Executive Officer Robert Cook and Executive Vice President of Member Supervision Bari Havlik, moderated by Chip Jones, Senior Vice President of Member Relations and Education. It’s not too soon to reserve your spot for the 2020 event. Don’t miss out, register today. Resources mentioned in this episode: FINRA360 Progress Report How to Get Involved: FINRA Committees 2019 Annual Budget Summary Report on Use of 2018 Fine Monies Episode 21: Member Supervision: Introducing Bari Havlik and the Exam Program Transformation Episode 14: Enforcement Guiding Principles Reg Notice 18-08: Outside Business Activities CAT Website Reg Notice 19-17: Pr

The world of money laundering is a fast-paced and ever evolving as we learned on the last episode of FINRA Unscripted. That can make it difficult for a financial firm to develop and maintain a robust anti-money laundering program. But maintaining a strong program is essential, making AML a perennial priority for FINRA’s examination staff. A robust AML program will not only safeguard the investing public and our financial markets, but it will also protect a firm’s reputation. On this episode of FINRA Unscripted, we are joined once again by Blake Snyder and Jason Foye of FINRA’s AML Investigative Unit to discuss current priorities and best practices when it comes to anti-money laundering regulation. Resources mentioned in this episode: FINRA Senior Helpline 2019 FINRA Priorities Letter FINRA CDD Rule Requirements

When three hapless employees inadvertently embezzle a bunch of cash in the movie “Office Space,” they decide the best way to cover it up is to launder it. But the thing is, they don’t even really know what money laundering is and they learned that even the dictionary couldn’t fill them in. If you want to understand what money laundering is, and more specifically, the efforts brokerage firms must take to prevent and detect it, stay tuned. We have something better than the dictionary: we have Blake Snyder and Jason Foye, two members of FINRA’s Anti-Money Laundering Investigative Unit. On this episode of FINRA Unscripted, Blake and Jason explain what money laundering is, how it looks different in the securities industry, how that makes regulation different for the securities industry, what FINRA’s Anti-Money Laundering Investigative Unit does and more. Resources mentioned in this episode: Key Topics: AML AML FAQs AML Half-Day Seminars

FINRA’s 2019 Budget Summary provides a unique view into FINRA’s budget for the current calendar year – providing greater transparency not just into FINRA’s operations, but also the self-regulatory organization’s financial guiding principles. The 2019 Budget Summary includes no fee rate increase for member firms, but projects a shortfall of $185.8 million – the result of a projected increase in operating expenses while revenues stay largely flat. But FINRA Chief Financial and Administrative Officer Todd Diganci isn’t worried. He explains how it is all part of FINRA’s long-term financial plan. On this episode of FINRA Unscripted, we learn more. Resources mentioned in this episode: Financial Reports and Policies 2019 Budget Summary

The Central Review Group is the nerve center of FINRA’s Office of Fraud Detection and Market Intelligence (OFDMI), triaging tens of thousands of matters every year. The group combs through everything from investor complaints, external tips and employee tips to disclosure events, routine regulatory filings and more to look for red flags of fraud or other concerns. If something of concern is spotted, the group determines how to escalate the situation, whether internally within FINRA or through a referral to other regulators. On this episode of FINRA Unscripted, Tony Cavallaro joins us to tell us more. Resources mentioned in this episode: Reg Notice 11-06: Consolidating Reporting Requirements Information Notice: Phishing Emails Targeting Member Firms Investor Alert: Beware Fake Checks 23: Insider Trading: Finding the Needle in the Haystack

As a self-regulatory organization, FINRA is uniquely positioned to gain meaningful insights from its members to ensure FINRA’s regulatory programs are working for everyone. Tasked with maintaining that relationship and keeping an open dialogue is FINRA’s Office of Member Relations and Education. The Member Relations and Education team routinely engages with firms through conferences, roundtables, boot camps and more. And because they recognize that regulation isn’t simple or easy, they offer a host of educational tools and resources. On this episode of FINRA Unscripted, Chip Jones, FINRA’s Senior Vice President of Member Relations and Education, joins us to tell us more about how FINRA works to make regulation smarter. Resources mentioned in this episode: Get Involved Committee Lists and Membership Conferences & Events Schedule 28: A look at the FINRA Institute at Georgetown CRCP Program Small Firm Resources Report Center

FINRA’s Central Registration and Depository (CRD) system is the central licensing and registration system not just for FINRA, but also for U.S. securities exchanges and all 50 states . But the system is still partying like it’s 1999. Twenty years after the CRD system’s last major update, FINRA is in the middle of a multi-year effort to overhaul the registration and disclosure system that is the backbone of the BrokerCheck, the free tool that allows investors to research the background of their financial professionals and firms. On this episode of FINRA Unscripted, FINRA’s executive vice president of Registration & Disclosure, Derek Linden, tells us more about the transformation and what users can expect. Resources mentioned in this episode: CRD Transformation Website Announcement: CRD Transformation BrokerCheck 12: How the Cloud Has Revolutionized FINRA Technology

The FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP) Program is designed to give careers a shot in the arm, whether you are a compliance professional, investment advisor, regulator or just someone in the financial services space. The two-week program is the premier professional development program for compliance professionals, providing not just a comprehensive look at current securities laws and regulations, but also an understanding of the regulatory trajectory and where things are going. On this episode of FINRA Unscripted, Jim Angel, an associate professor at Georgetown University’s McDonough School of Business, and FINRA’s Patricia Albrecht join us to tell us what makes the CRCP program a can’t-miss opportunity. Resources mentioned in this episode: FINRA Institute at Georgetown Small Firm CRCP Scholarship CRCP Program: Week I 23: Insider Trading: Finding the Needle in the Haystack FINRA Annual Conference

RegTech tools can present both tremendous opportunities and tremendous challenges for firms and regulators alike. They can also pose some interesting philosophical questions when it comes to their implementation. On this special episode of FINRA Unscripted recorded at FINRA’s RegTech conference in New York, we hear three unique perspectives on these opportunities and challenges. Joining us on this episode are: Nick Cook, head of RegTech and Advanced Analytics at the United Kingdom’s Financial Conduct Authority (FCA); Michael Pieciak, Vermont’s Commissioner of Financial Regulation and the president of the North American Securities Administrators Association (NASAA); and Haime Workie, FINRA’s senior director of Emerging Regulatory Issues. Listen to hear Nick, Mike and Haime discuss some of the most common ways firms are currently using RegTech, the challenges in implementation, key areas to watch and more. Resources mentioned in this episode: RegTech White Paper FinTech at FINRA Innovation Outreach Initiative R

The Annual FINRA Priorities Letter is a great resource for firms looking to improve their compliance, supervisory and risk management programs. But the 2019 Letter is a little different—this year focusing on materially new areas of focus so readers can better identify areas for program improvement. On this episode of FINRA Unscripted, we’re joined by Bari Havlik, FINRA’s executive vice president of Member Supervision, Steve Polansky, a senior director in Member Supervision, and Gene DeMaio, a senior vice president of options regulation and the trading and financial compliance exam program, to learn more about the changes to the letter and to drill into a few key topics. Stay tuned to hear more about new priorities such as fixed income mark-up disclosure and supervision of digital assets business, as well as some new takes on existing priorities, including suitability, best execution, market manipulation and more. Resources mentioned in this episode: 2019 Priorities Letter 2018 Priorities Letter 2018 Exam Find

Academics, economists, CEOs. FINRA’s Board of Governors is made up of a diverse group of individuals with diverse perspectives—a must for a group responsible for overseeing a complex organization such as FINRA. But how does someone become a member of FINRA’s Board of Governors? And what does this group do? What are its priorities for 2019? On this episode of FINRA Unscripted, Marcia Asquith, FINRA’s executive vice president of Board and External Relations answers these questions and more. Resources mentioned in this episode: 2: Building A More Transparent Organization FINRA Governance Board Composition FINRA360 Budget Summary and Financial Guiding Principles

Cybersecurity is a major challenge for everyone – companies and individuals alike. But it can be a particularly big challenge for those in the financial industry. After all, it isn’t just firm data at risk—customer data and customers’ life savings may be at stake. Cybersecurity is such a big obstacle for financial firms that this month FINRA released the “Report on Selected Cybersecurity Practices – 2018.” The new report sheds light on some effective practices for FINRA member firms when it comes to branch office controls, phishing attacks, insider threats, penetration testing programs and mobile devices. On this episode of FINRA Unscripted, Steve Polansky, a senior director in FINRA’s Member Supervision Shared Services group, Dave Kelley, a surveillance director out of our Kansas City office, and Yolanda Trottman, an examination director in the regulatory review group in New York join us to discuss the report’s findings. Resources mentioned in this episode: Report on Selected Cybersecurity Practices 2018 Exa