Reported by: FINRA

FINRA published today its 2023 Report on FINRA’s Examination and Risk Monitoring Program to provide member firms with key insights and observations to use in strengthening their compliance programs.

New Topics Covered in the Report:

• Manipulative Trading. The report’s findings include inadequate written supervisory procedures, non-specific surveillance thresholds and surveillance deficiencies.
• Fixed Income – Fair Pricing. Among the findings are incorrect determination of prevailing market price, outdated mark-up/mark-down grids, failure to consider the impact of mark-up on yield to maturity and unreasonable supervision.
• Fractional Shares. Reporting failures and inadequate supervisory systems and procedures are among the findings.
• Regulation SHO. This section includes findings on non-bona fide market making and impermissible reuse of locates.

Additionally, the report introduces a newFinancial Crimes section, consisting of three topics — Cybersecurity and Technological Governance; Anti-Money Laundering, Fraud and Sanctions; and Manipulative Trading. This highlights FINRA’s increased focus on protecting investors and safeguarding market integrity against these ongoing threats.

Read full report: https://finance.yahoo.com/news/finra-publishes-2023-report-exam-152400722.html