On May 28th, U.S. markets are moving to a one-day settlement cycle, familiarly known as T+1. This move, which returns the settlement time frame back to a point at which it last stood a century ago, will have wide ranging impacts for firms, investors and regulators. On this episode, we hear from James Barry, Director of Credit Regulation with FINRA's Office of Financial and Operational Risk Policy, Bobby Gomez, a Senior Director with Market Regulation and Transparency Services' Strategic Initiatives team, Mike MacPherson, a Senior Advisor in Member Supervision's Risk Monitoring group, and John Nachmann, Associate General Counsel with the Office of General Counsel's Regulatory Practice, to discuss what all market participants need to be thinking about and testing ahead of the transition.Resources mentioned in this episode:Episode 127: Understanding the Unique Risks of Every FirmDTCC: The Key to T+1 Success BlogReg Notice 23-15: Regulation T and SEA Rule 15c3-3 ExtensionTechnical Notice: T+1 Settlement TestingFINRA Margin RegulationFINRA Investor Insight: Understanding Settlement Cycles2024 Annual Regulatory Oversight Report

These days, it's not a matter of if, but when, when it comes to cybersecurity incidents, which is why it's essential for all firms to ensure they're prepared for the inevitable. On this episode, we're catching up with Bryan Smith, the new senior vice president of FINRA’s Complex Investigations and Intelligence (CII) team and Brita Bayatmakou, vice president of the Cyber and Analytics Unit within CII, for an update on CII, the cyber threat landscape and what firms should be thinking about and doing in response to the latest trends.Resources mentioned in this episode:FINRA's FBI Cyber Threat Briefings (Next Briefing: April 22)Episode 112: Introducing FINRA’s Complex Investigations and Intelligence TeamCISA Alerts and AdvisoriesFBI Internet Crime Complaint Center: Industry AlertsReg Notice 21-29: Obligations Related to Outsourcing to Third-Party Vendors

U.S. financial markets today are not what they were ten years ago, five years ago, or even just a couple of years ago. Over the years, FINRA's Market Regulation and Transparency Services (MRTS) team successfully grew and evolved to meet the changing demands of the markets they oversaw. But recently, the group took time to ask, how would we build this team if we were starting from scratch? And the answer to that question involved redesigning the group structure around specific functions, rather than around specific rules or products. On this episode, we hear from Feral Talib, Executive Vice President of Surveillance and Market Intelligence, Jackie Perrell, a Senior Vice President and Chief of Staff for MRTS, and Steve Price, Senior Vice President of Market Investigations to learn how the MRTS team has realigned itself, allowing it to be more nimble in addressing and anticipating risks, to better leverage its data and more.Resources mentioned in this episode:2024 FINRA Annual Regulatory Oversight ReportFeral Talib Named Executive Vice President and Head of Surveillance & Market IntelligenceEpisode 60: Greg Ruppert and the National Cause and Financial Crimes Detection Programs

Generative Artificial Intelligence (AI) and large language models (LLM) are taking the world by storm, presenting numerous opportunities to create business efficiencies. While the new technologies offer many potential benefits to firms, regulators and investors, they also introduce unique risks. On this episode, we hear from Brad Ahrens, senior vice president of Advanced Analytics, Andrew McElduff, vice president with Member Supervision's Risk Monitoring team and Haime Workie, vice president and head of FINRA's Office of Financial Innovation, who are closely looking at these technologies and following developments in this space to learn how FINRA is looking at and thinking about generative AI when it comes to its own business and what it's looking at and seeing when it comes to firm use of these tools.Resources mentioned in this episode:Artificial Intelligence (AI) in the Securities IndustryArtificial Intelligence (AI) and Investment FraudReg Notice 21-19: Obligations Related to Outsourcing to Third-Party VendorsRule 3110: Supervision2024 FINRA Annual Regulatory Oversight Report2023 Executive Order on Artificial Intelligence for CongressNIST: Artificial Intelligence

The FINRA Investor Education Foundation has released a new report, Investors of Color in the United States, examining the behavior and attitudes of investors of color based on data from the FINRA Foundation's National Financial Capability Study coupled with a series of focus groups conducted with young Black/African American, Hispanic/Latino and Asian American/Pacific Islander investors. The report shows interesting trends related to the pace at which these investors are entering the market, their views on risk, where they're receiving information and more. On this episode, we hear more from Ritta McLaughlin, Director of Investor Education, Community Outreach, and Principal Research Analyst Olivia Valdes to learn more.Resources mentioned in this episode:Investors of Color in the United States (2024) Gen Z and Investing: Social Media, Crypto, FOMO, and Family (2023)Investors in the United States: The Changing Landscape (2022)New Accounts and the People Who Opened Them (2021)FINRA Investor Education FoundationEpisode 134: Gen Z Investors

FINRA Enforcement works tirelessly on the front lines of investor protection, whether looking into cases of fraud or ways that bad actors try to manipulate the markets. This tremendous undertaking demands steadfast leadership. On this episode, we meet Bill St. Louis, the former head of FINRA’s National Cause and Financial Crimes Detection Program and FINRA's new Executive Vice President and Head of Enforcement, to learn more about the man at the helm and what's on the horizon for Enforcement in the new year.Resources mentioned in this episode:2024 FINRA Annual Regulatory Oversight ReportFINRA Enforcement HomepageFINRA Names Bill St. Louis as New Head of EnforcementFINRA Fines BofA Securities $24 Million for Treasuries SpoofingFINRA Expels Monmouth Capital ManagementQualification Exams

FINRA recently wrapped up a targeted review of the practices of certain member firms when it comes to communicating with retail investors regarding crypto products and services. On this episode, Ira Gluck, Senior Director, Advertising Regulation at FINRA, joins us to share the results of that crypto asset communications sweep that began in November 2022.Resources mentioned in this episode:Advertising Regulation DepartmentCrypto Asset Communications Targeted Exam LetterCrypto Asset Key TopicsCrypto Sweep UpdateFINRA Blog: An Inside Look into FINRA’s Crypto Asset WorkEpisode 136: An Introduction to FINRA’s Crypto Asset Work and the Crypto HubEpisode 137: The Crucial Role of FINRA’s CAI TeamEpisode 138: FINRA’s Blockchain LabRule 2210: Communications with the Public

As a self-regulatory organization, information sharing is key to FINRA's pursuit of its mission of investor protection and market integrity, and no single resource is a better example of that than FINRA's Annual Regulatory Oversight Report. On this episode, Ornella Bergeron, Senior Vice President of Risk Monitoring, Omer Meisel, Executive Vice President of the National Cause and Financial Crimes Detection Program, Claire O'Sullivan, Vice President and Regulatory Advisor of Stakeholder Engagement, and Michael Solomon, Senior Vice President of Examinations, join us to discuss highlights from the 2024 report.Resources mentioned in this episode:2024 FINRA Annual Regulatory Oversight ReportReg Notice 23-20: Guidance and Resources Related to Regulation Best InterestReg Notice 23-11: Concept Proposal for a Liquidity Risk Management RuleReg Notice 21-35: Proposed Order Routing Disclosure RequirementsSEC FAQ on Form CRSCAT NMS Plan WebsiteEpisode 136: An Introduction to FINRA’s Crypto Asset Work and the Crypto HubEpisode 137: The Crucial Role of FINRA’s CAI TeamEpisode 138: FINRA’s Blockchain LabEpisode 129: A New Twist on New Account Fraud

Succession planning, catastrophe planning, contingency planning--whatever you want to call it, these plans are important not just for customers and registered representatives but can even be a matter of life or death when it comes to the continued existence of a firm. On this episode, we talk to Jeanette Wingler, FINRA’s Special Assistant to the CEO, and Elena Schlickenmaier, a Senior Principal Analyst in Member Supervision, to dig into Regulatory Notice 22-23 on succession planning to hear how and why firms should plan for the expected and unexpected in life.Resources mentioned in this episode:Regulatory Notice 22-23Rule 4370: Business Continuity PlanningRule 2040: Payments to Unregistered PersonsContinuing Membership Application ResourcesFINRA Examination and Risk Monitoring Programs

The small firm community, those firms with 150 or fewer registered financial professionals came together in October to discuss and engage on key areas of concern at the Small Firm Conference. On this episode, we go behind the scenes of this year's event to share with you the fireside chat between FINRA CEO Robert Cook and FINRA's Head of Member Relations, Kayte Toczylowski. Resources mentioned in this episode:FINRA WebinarsFINRA Small Firm Conference CallsOffice of Hearing OfficersNational Adjudicatory CouncilSmall Firm Advisory CommitteeFINRA Board of GovernorsConferences & EventsMember Firm Hub

Forget ghosts and goblins, few things are as scary as household finances for U.S. adults. In a recent nationally representative survey, more than 1,000 adults shared what worries them most in their lives. The most common answer? Money. On this episode, we sit down with Gerri Walsh, the head of the FINRA Investor Education Foundation, to discuss the recent survey and its findings, while also providing tips and resources to help make money a little less spooky.Resources mentioned in this episode:Investor Resources and ToolsFINRA Foundation HomepageConsumer Insights: What really spooks Americans? Money.

American consumers and investors are losing billions of dollars each year to financial fraud. It's a devastating problem for which almost no one is completely immune. But the 2023 FINRA Foundation Ketchum Prize recipient has dedicated his life to understanding what makes someone susceptible to fraud—and pioneering ways to fight it. On this episode, we hear from Dr. Doug Shadel to hear about his research and years of working as one of America's most active fraud fighters.Resources mentioned in this episode:2023 Ketchum Prize AnnouncementAARP FoundationAARP Fraud Watch NetworkStanford Financial Fraud Research CenterFINRA Investor Education Foundation

FINRA oversees a diverse set of broker-dealer firms that make up a vibrant securities industry. But there's one thing all broker-dealer firms have in common. Every registered firm at one time or another must engage with FINRA's Membership Application Program, or MAP.On this episode, Jante Turner, Senior Advisor and Head of Triage for FINRA's Membership Application Program speaks about how the MAP program kicked off a significant transformation in spring 2022, and where that initiative stands today.Resources mentioned in this episode:Episode 104: Streamlining FINRA's Gatekeeper FunctionFINRA Information Notice 4/19/22 (FINRA Membership Application Program Transformation)Broker-Dealer RegistrationFINRA Standards for AdmissionForm NMAContinuing Membership Application ResourcesFINRA Member Firm HubFINRA Firm Grouping ConferenceEmail: MAP Group

In this third and final episode in our series covering FINRA's ongoing crypto asset regulatory work, we hear from FINRA's Blockchain Lab, which serves as a central point within FINRA for the development of blockchain-related regulatory initiatives.Michael Oh, Senior Director of the Blockchain Lab, Brian Huerbsch, a Senior Blockchain Data Analyst, and Jason Foye, Senior Director and head of FINRA's Crypto Hub share how the Lab is supporting and advancing FINRA's regulatory work involving crypto assets.Resources mentioned in this episode:Episode 136: An Introduction to FINRA’s Crypto Asset Work and the Crypto HubEpisode 137: The Crucial Role of FINRA’s CAI TeamInvestor Insights: What Is a Blockchain, and Why Should I Care?FINRA Blog: An Inside Look into FINRA’s Crypto Asset Work

As the crypto asset space has grown, FINRA has evolved its oversight of the crypto asset activities of FINRA member firms and their associated persons. In this second episode of a three-part series covering FINRA's crypto asset-related regulatory work, we hear from Jamie Udinson, Senior Director of the Crypto Asset Investigations team, Taylor Etzell, a Senior Principal Investigator, and Jason Foye, Senior Director and head of FINRA's Crypto Hub, who provide insight into FINRA's Crypto Asset Investigations Team. We learn more about this dedicated group of investigators specializing in conducting complex crypto asset investigations and the crucial role it plays in ensuring compliance with existing rules and regulations in the crypto asset space.Resources mentioned in this episode:Episode 71: Overlapping Risks, Part 1: Anti-Money Laundering and CybersecurityEpisode 72: Overlapping Risks, Part 2: Anti-Money Laundering and Elder ExploitationEpisode 117: Membership Application ProgramEpisode 136: An Introduction to FINRA’s Crypto Asset Work and the Crypto HubRule 3270: Outside Business Activities of Registered PersonsRule 3280: Private Securities Transactions of an Associated PersonFINRA Blog: An Inside Look into FINRA’s Crypto Asset Work

In 2022, FINRA developed an enterprise-wide strategy to ensure it is prepared for an evolving crypto asset regulatory landscape and created the Crypto Hub, the Blockchain Lab and the Crypto Asset Investigations Team. On this episode, the first in a three-part series, we sit down with Omer Meisel, Senior Vice President of the Complex Investigations and Intelligence Group, Jason Foye, Senior Director and Head of FINRA's Crypto Hub, and Reema Abdelhamid, a Director with FINRA Enforcement to learn more about the strategy and the role of the Hub and FINRA’s work to advance its mission of investor protection and market integrity.Resources mentioned in this episode:FINRA Blog: An Inside Look into FINRA’s Crypto Asset WorkSEC’s SPBD December 2020 StatementSEC’s September 25, 2020 No-Action Letter, “ATS Role in the Settlement of Digital Asset Security Trades”Crypto Asset Communications Exam Letter – November 2022FINRA and NFA Joint Press ReleaseReg Notice 20-23: Activities Related to Digital AssetsReg Notice 21-25: Continued Engagement in Activities Related to Digital AssetsEpisode 112: FINRA's Complex Investigations and Intelligence Team & Cyber and Analytics UnitEpisode 113: Regulatory Operations: Stronger Regulation Through Integrated OversightEpisode 117: Membership Application ProgramEpisode 134: Gen Z Investor AttitudesFINRA Foundation Report: Gen Z and InvestingInvestor Insights: What Is a Blockchain, and Why Should I Care?

An efficient capital raising process fosters business expansion, job creation and economic growth. And FINRA's members play an important role in this vital piece of our capital markets. Currently, FINRA's soliciting comments on the impact FINRA's Rules have on the capital formation process, as it looks for ways to increase efficiency and reduce unnecessary burdens. On this episode, we'll dig more into this process and FINRA's recent Request for Comment with Joe Price, Senior Vice President of Corporate Financing and Advertising Regulation, and discuss the recent Regulatory Notice 23-09 on FINRA's Rules impacting capital formation.Resources mentioned in this episode:Reg Notice 23-09: Capital Formation Request for CommentReg Notice 17-14: Request for Comment on FINRA Rules Impacting Capital FormationFINRA RulesSEC EDGAR DatabaseFrequently Asked Questions About Private PlacementsFINRA Board of Governors

Gen Z is now in the market and they're beginning to invest younger than any generation before them. A new study by the FINRA Foundation and CFA Institute has taken a deep dive into the attitudes and behaviors of this latest generation of investors, the oldest of which were just 25 at the time of the study.On this episode, Andres Vinelli, Chief Economist at CFA Institute, and Gerri Walsh, President of the FINRA Foundation and Senior Vice President of Investor Education at FINRA, join us to talk about the role of crypto as an onramp, how Gen Z is using, but not necessarily trusting, social media and much more.Resources mentioned in this episode:FINRA Foundation WebsiteCFA Institute WebsiteGen Z and Investing: Social Media, Crypto, FOMO, and Family Report (May 2023)New Investors 2022: Entering the Market in Novel and Traditional Ways (April 2023)National Financial Capability Study Investor Survey (December 2022)

In honor of Elder Abuse Awareness Month, we're taking a look at FINRA's important senior investor protection efforts, including a look at FINRA Rules 2165 and 4512, the first uniform National Senior Investor Protection Standards. On this episode, we hear from Associate General Counsel Alicia Goldin and Vice President and Associate General Counsel Jim Wrona where those rules stand today, explore some of the real-world scenarios in their application and provide tips for some of the tricky conversations that financial professionals might face in connection to their application. Resources mentioned in this episode:Rule 2165: Financial Exploitation of Specified AdultsRule 4512: Customer Account InformationEpisode 105: Essential Senior Investor Protection ToolsReg Notice 22-31: Practices for Obtaining Trusted Contacts“Investors in the U.S.: The Changing Landscape,” FINRA Foundation (December 2022)Trusted Contact Resource PageTrusted Contact Infographic2023 Report on FINRA’s Examination and Risk Monitoring Program2020 Ontario Securities Commission Protecting Aging Investors ReportBlame and Shame in the Context of Financial FraudIACP Successful Trauma-Informed Victim InterviewingSenior Safe Act Webinar: Identifying and Reporting Suspected Exploitation

FINRA's Examination team carries out a core function of FINRA's business by examining every member firm at least every four years and as often as annually, depending on the risk profile of each individual firm. These exams ensure firms remain in compliance with FINRA rules and federal securities laws and regulations and are at the heart of FINRA's mission of investor protection and market integrity. On this episode, Michael Solomon, Senior Vice President of Examinations, Nicole McCafferty, Vice President of the Retail Exam Firm Group, and Joe Sheirer, Vice President of the Office of Exams, join us for a deep dive into how the program works and what firms can expect during routine firm exams.Resources mentioned in this episode:Episode 127: FINRA’s Risk Monitoring ProgramEpisode 60: National Cause and Financial Crimes Detection ProgramsReg Notice 23-08: Selling Private Placements2023 Report on FINRA’s Examination and Risk Monitoring Program