Finra’s board of governors approved an upgrade to enforcement technology, advanced a proposal to target cheating on industry qualification exams and pledged to increase the diversity of the panel at a recent meeting.
At its June 10-11 virtual meeting, the board approved a proposal to enhance the Financial Industry Regulatory Authority Inc.’s enforcement technology platform, according to a report posted on the Finra website Wednesday.
The three-year project is designed to make case workflow more efficient and reduce costs. A Finra spokesperson declined to comment on how much Finra is spending on the upgrade. It comes in addition to $3.2 million the broker-dealer self-regulator allocated out of a fine proceeds last year to improve document and case management systems.
"The new enforcement technology platform will replace one that is 13 years old and currently presents workflow challenges, which can slow down the process of bringing enforcement actions," Finra Chief Executive Robert Cook said in a statement. "The Enforcement Digital Transformation will lead to greater operational effectiveness within the Enforcement department and for other regulatory groups at Finra, and—as an added benefit—reduced operating costs."
The board also approved the release of a regulatory notice seeking public comment on a proposal to establish procedures for dealing with Finra registrants and industry outsiders who cheat on qualification exams.
It’s not clear when the proposal will be released. A Finra spokesperson declined to comment on its details.
In recent weeks, Finra has decided to allow candidates to take qualification exams remotely due to social distancing requirements related to the coronavirus pandemic. In 2018, Finra established a new examination, called the Securities Industry Essentials exam, for people who aspire to enter the industry.
A testing expert said it’s a good idea for Finra to specify how it will deal with those who violate the examination standard of conduct.
“It’s hard to cheat when you go to a Prometric testing center,” said Brian Marks, president of Knopman Marks Financial Training. “The candidates hellbent on breaking the rules are more likely to do so in a remote environment. So it makes sense for Finra to codify the rules.”
In the wake of the nationwide protests over the death of George Floyd while he was in police custody in Minneapolis, the Finra board called for an inclusive Finra and financial industry workforce.
“We are committed to continuing to increase the diversity of the Finra Board of Governors,” the board said in a June 11 statement posted this week on the Finra website. “As a leader in the financial services industry, we also support management's determination to work collaboratively with others to promote greater diversity and inclusion across the industry, so that the industry can better engage traditionally underinvested communities and better represent and serve the needs of all investors.”
RBC Wealth Management's latest move in New York adds an elite eight-member team to its recently opened Westchester office.
Stifel – so far - is on the hook for more than $166 million in damages, legal fees and settlements in investor complaints involving Roberts, a 35-year industry veteran.
The giant alt investments platform's latest financing led by T. Rowe Price and SurgoCap Partners, along with State Street, UBS, and BNY, will fuel additional growth on multiple fronts.
Some investors recently have seen million dollar plus decisions by FINRA arbitration panels involving complex products decisions go their way.
New report shines a light on how Americans view wealth today.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
