FINRA Releases 2024 Annual Regulatory Oversight Report: Covering New Topics Such as Crypto Assets and Enhanced Industry Risks for Firms to Consider

FINRA (Financial Industry Regulatory Authority) released its 2024 Annual Regulatory Oversight Report, in which it covers 26 new topics that are relevant to firms' compliance programs. Some of the new topics include crypto asset developments, advertised volume, cybersecurity, industry risks and threats, anti-money laundering (AML), fraud, sanctions, Regulation Best Interest (Reg BI), Form CRS, and Consolidated Audit Trail (CAT).

For each topic, the report outlines the relevant rule(s), key considerations for compliance programs, noteworthy findings from recent oversight activities, and effective practices observed by FINRA. It also provides additional resources that may assist firms in reviewing their supervisory procedures and fulfilling their compliance obligations.

The report features contributions from Greg Ruppert, Executive Vice President of Member Supervision; Ornella Bergeron, Senior Vice President of Member Supervision; Omer Meisel, Executive Vice President of the National Cause and Financial Crime Detection Program; and Michael Solomon, Senior Vice President of Examinations.

The main focus areas of the report are crypto assets, cybersecurity, Reg BI and Form CRS, and AML, fraud, and sanctions. FINRA encourages firms to utilize its website and other resources to stay informed and compliant with industry regulations.

Finally, FINRA announces its upcoming 2024 Annual Conference, which will cover various topics related to the securities industry and provide opportunities for networking and learning. Overall, the report serves as a comprehensive guide for firms to enhance their compliance efforts and mitigate potential risks.