FINRA CEO Speech New Role
On May 17, FINRA CEO Cook spoke on evolving role and challenges.
- Speech at 2017 FINRA annual conference, issued video highlights and reflections.
- Discussed how FINRA adapted to changes in regulation, technology and products.
- On investment strategy, customer needs, business model, competitive landscape.
- FINRA 360
- As new CEO from outside, Cook worked with management to see how things done.
- Plan to identify possible improvement and conduct organizational self-assessment.
- Questions to ask on whether policies and programs have right focus and priorities.
- Whether organization, operation efficient, effective, adequate member dialogue.
- Part of Finra360 framework to process internal and external feedback on changes.
- Will focus on regulatory functions, use of data, technology, and metrics to assess.
- Regulatory Operations Committee
- Board recently set up regulatory operations oversight committee, on a pilot basis.
- Provide opportunity for board and staff, to review regulatory operations processes.
- Need for continuous improvement in initiatives including exams and enforcement.
- Increased spending over last 2 years to improve new examiner hiring and training.
- Review of enforcement program on greater transparency and guidance to industry.
- Investing in technology to support regulatory operation and reduce operating cost.
- Rulemaking Initiatives
- Several initiatives to make rules more efficient, e.g. capital formation see #31856.
- Conducting review of outside business, private securities investments, see #32258.
- Measures to remove high risk brokers and bad actors from the industry, see #32110.
- Will address more topics, e.g. registration, to ensure rules are effective, efficient.
- Technology Innovation
- FINRA Innovation Outreach Initiative will engage with fintech providers, members.
- Blockchain Symposium in New York on Jul. 13, 2017, will be one opportunity to do.
- Identify and prioritize fintech topics that impacted securities industry, coordinate.
- Compliance Tools
- For smaller firms, determine which resources they use and additional ones needed.
- New compliance calendar, and vendor directory to help with obligations, deadline.
- Issued guidance on using social network, disclosure, online access to 43 reports to
help with compliance, e.g. cross-market surveillance report card launched in 2016.
- Communications and Conduct
- Meaningful interaction with member firms, investors and other market participants.
- Mar. 2017 FINRA consultation on program of engagement, is a key part, see #31548.
- Important to reach high standards of conduct, improve cooperation with members.
- Enhanced oversight of high-risk brokers, sanction guidelines on disciplinary history.
- May 2017 Compliance Tools Update
- On May 24, 2017, FINRA issued compliance tools for vendor directory and calendar.
- Vendor categories of consulting, cybersecurity, data, email, exam, rule monitoring.
- Calendar view has: upcoming filings, educational events, and significant deadlines.
||DB 5/24/2017, PR, SP 5/17/17, FinTech
||Trading; Research; Compliance; C-Suite; Financial; Legal; Operations; Registration; Technology
||United States of America
||Commodities; Corporate; Derivatives; Securities; Clearing
Last substantive update on 05/24/2017