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.

Regulators FINRA
Entity Types B/D; Corp
Reference DB 5/24/2017, PR, SP 5/17/17, FinTech
Functions Trading; Research; Compliance; C-Suite; Financial; Legal; Operations; Registration; Technology
Countries United States of America
Products Commodities; Corporate; Derivatives; Securities; Clearing
Regions Am
Rule Type Guidance
Rule Date 5/17/2017
Effective Date 5/17/2017
Rule Id 32301
Linked to Rule :31548
Report Issue 6/1/2017
Report Section US Investment

Last substantive update on 05/24/2017