The SEC and FINRA recently announced their examination priorities for 2015. Although each regulatory body has its own distinct focus areas, there are seven common priorities that securities firms may want to put at the top of their to-do lists.
Broadly speaking, the SEC will be focusing on three high level areas: protecting retail investors; assessing market-wide risks; and using data analytics. FINRA’s high level focus will be on addressing recurring challenges within its member firms, including: putting customer interests first, firm culture, supervision, risk management and controls, product and service complexity, and management of conflicts of interest.
Digging into the details, our analysis reveals seven specific priorities shared by both regulatory bodies:
The fact that these priority areas are being independently targeted by both the SEC and FINRA suggests they are especially important and should likely be a top priority for securities firms as well. What’s more, by addressing these common areas first, securities firms can effectively kill two birds with one stone.
For a broader perspective on key regulatory trends in the securities industry, refer to the recently released Deloitte report entitled “Forward Look: Top Regulatory Trends for 2015 in Securities”.