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FINRA Launches Initiative to Simplify Firms’ Digital Experience With FINRA, Facilitating More Efficient and Effective Compliance Programs

On May 14, the Financial Industry Regulatory Authority (FINRA) announced that it is launching an initiative designed to transform the digital platform used by firms to engage with FINRA across a variety of programs. The Digital Experience Transformation (the “Initiative”) is an effort to integrate and simplify the digital interactions between brokerage firms and FINRA. The Initiative aims to facilitate efficiency and effectiveness of compliance programs.

In connection with the Initiative, FINRA has solicited and incorporated feedback from the industry through a series of focus groups with firms, as well as a survey of more than 50 firms. These firms provided insights into how the industry interacts with FINRA for compliance information and management, and how the processes can be improved.

The Initiative, which will be implemented in stages over the course of the next few years, is focused on six areas:

  • efficiency—centralized task management designed to help compliance professionals do their work faster and at lower cost;

  • proactive compliance—actionable notifications for early warning of issues;

  • simplified experience—customized and personalized user experience tailored to the role of the user;

  • enhanced interaction—centralized workspace to facilitate interaction with FINRA staff;

  • flexibility and automation—easier machine-to-machine integration with firm systems, plus enhanced access to FINRA compliance data; and

  • self-service—access to online knowledge base and contextual support.

A full press release from FINRA in connection with this matter is available here.

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About this Author

Michael T. Foley, Katten, Lawyer, Finance, FINRA, Chicago
Special Counsel

Michael Foley represents broker-dealers, investment advisers and other financial services industry participants with respect to a broad spectrum of legal and regulatory matters arising under the federal securities laws.

Michael has nearly 20 years of experience in private practice and in-house at both a large, full-service broker-dealer and at an online discount broker-dealer, advising broker-dealers and other financial institutions regarding compliance with the federal securities and commodities laws, and with the regulations of the US Securities and Exchange...

312-902-5452
Susan Light, Katten Law Firm, Finance Law Attorney, New York
Partner

Susan Light focuses her practice on financial services regulatory matters. She counsels broker-dealers, hedge funds, investment banks and financial services clients on enforcement issues involving the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), other self-regulatory organizations (SROs) and state and federal regulatory authorities. She has particular experience related to sales practice issues, financial and operational issues, anti-money laundering, crowdfunding, cybersecurity, and cryptocurrencies.

Previously, Sue was a senior vice president and chief counsel of Enforcement for FINRA, where she supervised all aspects of regulatory investigations, negotiations, settlements and disciplinary hearings concerning a wide variety of FINRA rules and federal securities laws. Prior to its merger with FINRA, she served in a similar role with NYSE Regulation, Inc. and helped lead the integration of the two enforcement departments. Earlier, Sue was a trial attorney in the Office of the District Attorney for Bronx County, New York.

Sue is a frequent speaker on regulatory and compliance topics for broker-dealer and securities conferences. She also advises several professional journals on securities industry topics.

212-940-8599
Associate

Leonard Licht is an associate in the Financial Services practice. He advises a broad range of financial market participants, including investment managers to private funds and investors in private funds. Prior to joining Katten, Lenny practiced as a corporate and securities attorney and has also worked in an analytical capacity with a family office.

While in law school, Lenny was a Heyman scholar and member of the Moot Court Honor Society.

212-940-6587