FINRA Compliance Consulting Services
Intelligence Driven Cyber Security Operations
FINRA COMPLIANCE CONSULTING
The Financial Industry Regulatory Authority (FINRA) is a government-authorized not-for-profit organization responsible for overseeing transactions and trading practices in the US financial markets. It supervises a vast number of brokers and daily transactions to protect the integrity of financial markets and ensure fair trading for investors. FINRA also offers extensive support to stakeholders, including investors, policymakers, and market regulators.
FINRA, overseen by the Securities and Exchange Commission (SEC), promotes fairness and integrity in financial markets through various means, such as providing investor protections, enforcing regulations, setting standards for securities, and enhancing investor education.
Compliance with FINRA regulations is mandatory for organizations operating in the financial industry or engaging in securities trading on the New York Stock Exchange. To meet FINRA compliance requirements, organizations must address four main compliance concerns, including firm operations, transparent communications and sales, integrity in financial transactions, and secure management of financial assets.
There are three types of entities required to comply with FINRA:
- Broker-dealer firms, which conduct securities transactions on behalf of investors.
- Capital acquisition brokers, offering limited securities-related financial services to companies or private equity funds.
- Funding portals, certified by the SEC as crowdfunding service providers.
At Certcube, we specialize in guiding financial professionals through FINRA/SEC regulations and standards to mitigate cyber security risks. Our advisors help establish policies and procedures, ensuring the implementation of cybersecurity best practices to safeguard customer data from potential breaches.
Certcube assists in reviewing your organization’s approach to various aspects, including technology governance, system change management, risk assessments, technical controls, incident response, vendor management, data loss prevention, staff training, FINRA compliance, and SEC data security
Our approach to FINRA COMPLIANCE AUDIT
The auditor will assess the firm’s risk management practices and determine whether the firm has identified and mitigated potential compliance risks.
Follow-up and Monitoring
Our FINRA ComplianceServices
Benefits to Being FINRA Compliant
By being FINRA compliant, you can benefit from:
- Enhanced data security by implementing
- FINRA cybersecurity controls
- Higher confidence in the integrity of your securities transactions
- Full licensing and designation as a broker or securities firm
- FINRA-provided resources for training and supporting your staff
Compliance with FINRA regulations will also help you avoid potential violations of securities trading and related financial practices—and possible consequences they could entail.
Consequences of Being Non-Compliant With FINRA
Non-compliance with FINRA may result in a securities violation and potential disciplinary action.
If your organization is found to be non-compliant with FINRA regulations, you may undergo disciplinary action in the form of:
- A settlement through which you can resolve the alleged violation by completing and submitting the necessary documentation stipulated by FINRA
- An appearance at an official hearing if you do not settle the complaint
FINRA violations may also result in fines, suspension from securities trading, and exclusion from participating in the financial services industry (for the most significant violations).
How Do You Become FINRA Compliant?
Depending on the financial services you provide, you become FINRA compliant by meeting slightly different FINRA compliance requirements. FINRA provides a range of compliance tools such as checklists and templates to help organizations in the financial industry comply.
However, it is always best to consult with FINRA compliance consultants, who can advise on best practices for achieving and maintaining seamless, long-term FINRA compliance.