On Feb. 9, 2022, the Financial Industry Regulatory Authority (FINRA) released its 2022 Report on FINRA’s Examination and Risk Monitoring Program (Report), in which it identifies its areas of examination focus for FINRA Member Firms (Firms) in 2022. This is the second year of FINRA’s new reporting system, which replaced the prior format for examination focus – the Risk Monitoring and Examination Program Priorities Letter. The Report builds on last year’s report by adding new areas (see February 2021 GT Alert) of focus and new materials related to established areas of focus.
The Report addresses several key topics from four distinct categories: Firm Operations, Communications and Sales, Market Integrity, and Financial Management. Highlighted areas from these four categories were:
- Regulation Best Interest (Reg BI) and Form CRS
- Consolidated Audit Trail (CAT)
- Order Handling, Best Execution, and Conflicts of Interest
- Mobile Apps
- Special Purpose Acquisition Companies (SPACs)
- Complex Products
The Report also contains an Appendix that describes how Firms can use the Report in their compliance programs.