The Financial Industry Regulatory Authority (FINRA) has outlined its annual regulatory priorities announcing it will be scrutinising the stated and unstated rules, policies, practices and behaviours that govern how companies operate and interact with customers. It will also complete the review begun in late 2015 regarding incentives and conflicts of interest in connection with firms' retail brokerage business. FINRA is also looking at whether there are any areas where regulation could improve to help ensure consumers have access to a fair price for their services. Regulators will be looking at how discipline is meted out amongst high-producing and low producing advisers; previously, brokerage firms generally gave second chances to their so-called top producers when violations were discovered, however, banks such as Merrill Lynch are increasingly taking a zero-tolerance approach.
The Financial Industry Regulatory Authority (FINRA) has outlined its annual regulatory priorities announcing it will be scrutinising the stated and unstated rules, policies, practices and behaviours that govern how companies operate and interact with customers. FINRA is also looking at whether there are any areas where regulation could improve to help ensure consumers have access to a fair price for their services. Regulators will be looking at how discipline is meted out amongst high-producing and low producing advisers; previously, brokerage firms generally gave second chances to their so-called top producers when violations were discovered, however, banks such as Merrill Lynch are increasingly taking a zero-tolerance approach.