Finra Unscripted

The pandemic forced the world to re-evaluate how it works in a number of ways—and FINRA’s Arbitration & Mediation Forum is no exception. To keep processes moving, FINRA Dispute Resolution Services allowed hearings to proceed virtually. Now, a year later, we are looking at lessons learned, tips for practicing in a remote environment and plans for the future of arbitration and mediation. On this episode, we are joined by Richard Berry, Executive Vice President of FINRA’s Dispute Resolution Services, and two practitioners, Sam Edwards, a partner with the securities litigation and arbitration law firm Shepherd, Smith, Edwards and Kantas, and Beverly Jo Slaughter, senior managing counsel with Wells Fargo’s Wealth Investment Management Litigation group. Resources mentioned in this episode:Episode 10: What Is FINRA’s Dispute Resolution ForumCoronavirus Impact on Arbitration & Mediation HearingsNeutral Workshop: Tips for Virtual HearingsArbitrator Resource Guide for Virtual HearingsArbitrator Training Videos

A three-day employee hackathon event a few years ago resulted in an idea that has since transformed the way FINRA’s Advertising Regulation group does its work. On this episode, we are joined by Amy Sochard, Vice President of FINRA’s Advertising Regulation program, and Lisa Fair and Saugata Chakraborty of FINRA’s Technology, to hear about the impressive collaborative effort to build a tool to apply advanced analytics and machine learning to the review of firm advertising and public communications materials. Resources mentioned in this episode:Advertising Regulation Topic PageEpisode 53: Advertising RegulationEpisode 43: The Createathon

The brokerage industry has an important role to play when it comes to detecting, preventing and reporting fraud. It's not just a regulatory concern, but an important reputational concern for individual firms and the industry as a whole. On this episode, we hear from Greg Ruppert, head of FINRA's National Cause and Financial Crimes Detection Programs, about recent trends in the fraud space and how firms can work to protect themselves and their customers.Resources mentioned in this episode:FTC Scam AlertsFBI Fraud ResourcesIC3 Annual ReportsEpisode 60: Introducing Greg Ruppert and the NCFCEpisode 71: Overlapping Risks, Part I: AML and CybersecurityEpisode 73: Overlapping Risks, Part II: AML and Elder Financial Exploitation

Last year, as FINRA staff looked to adjust to a new exam and risk monitoring program structure, the industry and the world was struck with an unprecedented global crisis. On this episode, the second in a two-part series, we hear from Ornella Bergeron, senior vice president of the carrying and clearing and diversified firm groups; Tom Nelli, senior vice president of exams and standards; Bill St. Louis, senior vice president of the retail and capital markets firm groups; and Tim Thompson, senior vice president of the trading and execution firm group on how FINRA adjusted its Exam and Risk Monitoring program in the face. Then, we turn to the current year to talk about the new 2021 Report on FINRA’s Examination and Risk Monitoring Program to discuss insights on recent exam findings and priorities for the year ahead. Resources mentioned in this episode:Episode 79: Year in Review: The 2020 Exam and Risk Monitoring Program2021 Report on FINRA’s Examination and Risk Monitoring Program

2020 was a year of great change and transition for FINRA’s Exam and Risk Monitoring Program—and the pandemic wasn’t even the start of it. On this episode, the first in a two-part series, we hear from Ornella Bergeron, senior vice president of the carrying and clearing and diversified firm groups; Tom Nelli, senior vice president of exams and standards; Bill St. Louis, senior vice president of the retail and capital markets firm groups; and Tim Thompson, senior vice president of the trading and execution firm group on how the program fared in its first year after a major transformation.Resources mentioned in this episode:Episode 50: What to Expect: The 2020 Exam and Risk Monitoring ProgramEpisode 49: A Career Highlight: Exam and Risk Monitoring Program Transformation UpdateFINRA Announces Senior Leadership Team Under New Examination and Risk Monitoring Program StructureNote: The audio was updated on Thursday, March 25, 2021, for clarity.

Over the past year, cybersecurity has only increased in importance as huge swaths of the workforce began—and continue—to access networks remotely, resulting in a significant shift to the cybersecurity landscape. On this episode, we hear from John Brady, FINRA’s Chief Information Security Officer (CISO), and Eric Pickersgill, FINRA’s Deputy CISO, on how FINRA handled the transition and areas of focus for the year ahead. Plus, we learn why you should think twice before trying to brush that piece of hair or dust off your phone screen. Resources mentioned in this episode: Cybersecurity Topic PageSmall Firm Cybersecurity ChecklistObservations on Cybersecurity

Formal disciplinary action or informal action, settlement or complaint. Or, the one you never hear about: no action. There are a lot of possible outcomes for an Enforcement investigation. And a disciplinary action is far from guaranteed at the outset of the process. On this episode, Executive Vice President and Head of FINRA Enforcement Jessica Hopper walks us through the Enforcement process from referral to final outcome for all these possibilities and details the many steps along the way. Resources mentioned in this episode:FINRA EnforcementMonthly Disciplinary ActionsDisciplinary Actions Online DatabaseEnforcement Process ChartOffice of Hearing OfficersGuide to Disciplinary Hearing Process

This episode originally aired in September 2020.Technology is opening up new possibilities when it comes to solving business challenges. And that's important when it comes to optimizing an organization's most valuable limited resource: its people.On this episode, we hear from Member Supervision's new head of Data Analytics and Technology Kerry Gendron to learn how FINRA is augmenting its examination and risk monitoring program and teaching its employees the art of the possible.Resources mentioned in this episode:Episode 67: FINRA’s R&D ProgramEpisode 49: Exam and Risk Monitoring Program Transformation

For the last couple of years, FINRA has been working to revolutionize the digital experience of firms, particularly when it comes to registration and disclosure. Now many of these changes have come to life through the new FINRA Gateway and an enhanced Form U4 filing experience.On this episode, we talk to Credentialing, Registration, Education and Disclosure’s Noah Egorin and Technology’s Claudia Holanda to hear about recent changes and what firms and registered reps alike can expect going forward as FINRA continues to iterate and improve the digital experience.Resources mentioned in this episode:Episode 29: CRD TransformationEpisode 36: Digital Experience TransformationFINRA GatewayFINRA Gateway WebinarsFinancial Professional Gateway (FinPro)Sign up for FINRA EmailsSend Feedback: feedbackfinragateway@finra.org

If you've ever been to a FINRA conference or boot camp, participated in a small firm call or graduated from the Certified Regulatory and Compliance Professional (CRCP) program, you've benefited from the hard work of FINRA's Member Relations and Education team. Member Relations and Education is responsible for ensuring FINRA's regulatory programs are working for everyone and maintaining a strong relationship with FINRA's member firms. On this episode, we talk to Kayte Toczylowski, the group's new head, to hear how they've adapted in the face of COVID-19 and what the future looks like for this group.Resources mentioned in this episode:Get InvolvedCommittee Lists and MembershipConferences & Events ScheduleVirtual Conference Panels FINRA Institute at Georgetown CRCP ProgramRegulatory Notice 20-42

Earlier in November, FINRA hosted the virtual AI Conference to bring together regulators and leaders across the financial services industry to discuss the use of artificial intelligence and related opportunities and challenges.On this episode, we’re dropping in for a quick listen the first of the conference’s sessions, “Industry Views on the Current and Future State of Artificial Intelligence,” with Imperative Execution CEO Roman Ginis, SIFMA Managing Director and Associate General Counsel Melissa MacGregor and Head of Fidelity Labs Mona Vernon, moderated by Haime Workie from FINRA Office of Financial Innovation, as they talk about the role of AI in the securities industry.Resources mentioned in this episode:White Paper: Artificial Intelligence in the Securities IndustryKey Topics: FinTech

A broker-deal firm’s anti-money laundering efforts may overlap with any number of other regulatory concerns. On the last episode, we looked at the intersection of a firm’s AML and cybersecurity risks. On this episode, the second in a two-part series, we’re looking at how AML may overlap with a firm’s efforts to protect senior investors from exploitation and fraud.Joining us on this episode are Jason Foye, a director with FINRA's Anti-Money Laundering Investigative Unit, and Brooke Hickman, a director with FINRA's Vulnerable Adults and Seniors Team (VAST), both with FINRA’s National Cause and Financial Crimes Detection Program. Resources mentioned in this episode:FinCEN February 2011 Advisory on Filing SARs Regarding Elder Financial ExploitationSARs on Elder Financial Exploitations: Issues and Trends, CFPBDOJ’s Elder Justice InitiativeFINRA Resources on Senior InvestorsFINRA Securities Helpline for SeniorsFINRA Foundation – Aging and Financial Decision Making FINRA Investor AlertsVirtual Conference Panel: Soci

Firm regulatory risks and priorities don't exist in a vacuum. And that is perhaps nowhere clearer than when it comes to a firm's anti-money laundering responsibilities. A firm's AML risks can overlap with any number of other priorities. On this episode, the first of a two-part series, we're looking at the intersection of a firm's AML and cybersecurity risks. Joining us are Jason Foye, a director with FINRA's Anti-Money Laundering Investigative Unit, and Dave Kelley, a director with FINRA's Cybersecurity Specialist Program, both with FINRA’s National Cause and Financial Crimes Detection Program. Resources mentioned in this episode:Episode 60: Introducing Greg Ruppert and the NCFCEpisode 33: Money Laundering in the Securities IndustryEpisode 34: AML Priorities and Best Practices SWIFT: How Cyber Attackers ‘Cash Out’ Following Large-Scale HeistsFinCEN October 2020 Advisory on Ransomware FinCEN July 2020 Advisory on CybercrimeFinCEN October 2016 Advisory on Cyber Events

In the 30 years since the passage of the of the Americans with Disabilities Act, or ADA, there have been profound changes. But in this 30th Anniversary year, much remains to be done to advance the economic self-sufficiency of Americans with disabilities. Michael Morris’s research into and advocacy work around the financial security and capability of Americans with disabilities earned him the 2020 Ketchum Prize, the FINRA Foundation’s highest honor, which looks to recognizes outstanding service and research to advance investor protection and financial capability in the U.S.On this episode, we talk to Michael Morris, the founder of the National Disability Institute, about his research, the intersection of race and disability, potentially impactful policy changes that have yet to be made and what leaves him feeling optimistic about the future.Resources mentioned in this episode:National Disability InstituteKeys to Financial Inclusion PodcastRace, Ethnicity and Disability: The Financial Impact of Systemic Inequal

For some investors, a high-volume trading strategy could be something they seek. For others, it might be a sign of "excessive trading.” But when does a lot become too much? What is a firm’s responsibility when it comes to supervising for this behavior? On this episode, Chris Kelly, deputy head of FINRA Enforcement and head of Main Enforcement and Sales Practice Enforcement joins us to talk about excessive trading or churning. He shares why this practice remains in focus for FINRA Enforcement and some recent trends. Resources mentioned in this episode:Monthly Disciplinary ActionsBlog: Red Flags to Detect Excessive TradingInvestor Insights: 3 Ways to Guard Against Excessive Trading

Technology is opening up new possibilities when it comes to solving business challenges. And that's important when it comes to optimizing an organization's most valuable limited resource: its people. On this episode, we hear from Member Supervision's new head of Data Analytics and Technology Kerry Gendron to learn how FINRA is augmenting its examination and risk monitoring program and teaching its employees the art of the possible.Resources mentioned in this episode:Episode 67: FINRA’s R&D ProgramEpisode 49: Exam and Risk Monitoring Program Transformation

FINRA's Research and Development Program is using advanced analytics to change the way FINRA performs its essential regulatory functions. Feeding off FINRA’s culture of innovation, the R&D program is designed to be quick and agile, hoping to find transformative new technologies, but willing to fail and fail fast when an idea doesn't work out. On this episode, we hear from FINRA Technology’s Ivy Ho and Greg Wolff how the R&D program is pioneering the future of how FINRA fulfills its mission. Resources mentioned in this episode:Episode 43: The CreateathonEpisode 41: Introducing FINRA’s ValuesEpisode 36: Transforming the Digital Experience of Firms

An ombudsman is a neutral party that acts as an impartial, confidential and independent resource that informally works to assist in finding solutions to issues or concerns an individual may have with an organization. And FINRA's Ombudsman is no different. On this episode, we sit down with FINRA's Ombudsman Cindy Foster to learn more about the office and how she works to prevent real or perceived conflicts of interest and, when necessary, recommend changes to ensure fair policies and procedures remain in place.Resources mentioned in this episode:Office of the OmbudsmanFINRA Audit CommitteeInternational Ombudsman AssociationUnited States Ombudsman AssociationFINRA Whistleblower Tip LineInvestor Complaint Center

When three hapless employees inadvertently embezzle a bunch of cash in the movie “Office Space,” they decide the best way to cover it up is to launder it. But the thing is, they don’t even really know what money laundering is and they learned that even the dictionary couldn’t fill them in.If you want to understand what money laundering is, and more specifically, the efforts brokerage firms must take to prevent and detect it, stay tuned. We have something better than the dictionary: we have Blake Snyder and Jason Foye, two members of FINRA’s Anti-Money Laundering Investigative Unit.On this episode of FINRA Unscripted, the first of a two-part series, Blake and Jason explain what money laundering is, how it looks different in the securities industry, how that makes regulation different for the securities industry, what FINRA’s Anti-Money Laundering Investigative Unit does and more.Continue the conversation with part II. Resources mentioned in this episode:Key Topics: AMLAML FAQsAML Half-Day Seminars

With the cancellation of the 2020 FINRA Annual Conference and other in-person events throughout the year, we’ve gone virtual with a variety of on-demand conference panels on regulatory hot topics. On this episode, we’re dropping in for a quick listen to the latest FINRA Virtual Conference Panel with FINRA CEO Robert Cook, Member Supervision Head Bari Havlik and Chief Legal Officer Bob Colby, moderated by Chip Jones, head of Member Relations and Education, as they talk about the continued impact of the coronavirus on firm and FINRA operations, recent conversations around racial justice in America and more. You can watch this full panel and nearly a dozen more on the FINRA website at any time.Resources mentioned in this episode:FINRA Senior Leaders Fireside Chat on Current IssuesCOVID-19 FAQsRegulatory Notice 20-16Statement from the Board of Governors, June 2020