Open Dialogue Key To A Painless Regulatory Compliance Exam

Communication is a great thing–when it works. How many great projects and relationships have failed because of a failure to communicate? Too many to count. Don’t let your relationship with regulators be one of them, says Susan Axelrod, head of the Financial Industry Regulatory Authority’s member regulation sales practice area. Suzanne Barlyn at Reuters reports that brokerages should be proactive in explaining their procedures and processes to regulators as they make internal changes to comply with  a new FINRA rule that requires brokerages to ensure that products are suitable for clients at all times, not only at the time of the sale. Additionally, FINRA has announced that it will be targeting high-risk brokerages that have warning signs such as not meeting liquid assets requirements. Axelrod encourages brokerages to invite FINRA into their offices for a walkthrough demonstration of new compliance procedures, as some firms have already done. And one last thing: answer that survey they sent out back in February. According to Axelrod, it’s designed to help FINRA make exams less time-consuming. Moral of the story: put in the time on the front end and save yourself a major headache later.

About Beth Connolly

Beth Connolly is Head Editor, Writer, and Marketing Coordinator at the Compliance Exchange and the Wall Street Job Report. She tweets @Bethconnolly and shares her love of the good writing life at her blog, When Nutmeg Met Basil. A graduate of Middlebury College in Vermont, she works in Manhattan and calls Astoria home.

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