Amy Lynch comments on FINRA’s upcoming rule proposal revising oversight of outside business activities (InvestmentNews)

Founder and President Amy Lynch provided the lead quotes in a story on FINRA’s soon to be released rule proposals, one of which revises the types of outside business activities that broker-dealers must monitor. Ms. Lynch comments that the vagueness of the current definition of outside business activities challenges firms proper oversight and supervision in this area. She explains that the newer definition in the upcoming rule proposal should provide greater clarity for firms. Ms.…

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Compliance needs to tighten its grip on firm data; Amy Lynch comments (IGNITES – Subscription Req’d)

Firm CCOs are increasingly being challenged to collect and analyze data in response to regulators greater reliance on technology tools to mine data. Founder and President Amy Lynch states that once data has been obtained, CCOs should have the ability to effectively analyze that data, especially at the transactional level. However, Ms. Lynch cautions that compliance still needs to carefully scrutinize exception reports, which may require a manual review to detect red flags. See IGNITES

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FINRA’s Findings Have Broad Reach to Various Firm Types

Last week FINRA released its “Report on FINRA Examination Findings” (the “Report”) that covered commonly found deficiencies in its examination of broker-dealers. Since FINRA examines its members at least once every four years, it’s database of violations is much larger than the SEC’s. Many violation types named in the Report are also relevant for SEC registered investment advisers or dual registrants since they include general regulatory requirements. Here, we summarize those violations cited in the…

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