FINRA Issues 2017 Examination Priorities Letter

Introduction

Consistent with prior practice, with the arrival of the new year, FINRA has published its key examination priorities.  The letter may be found at the following link: http://www.finra.org/sites/default/files/2017-regulatory-and-examination-priorities-letter.pdf.

As in prior years, the letter covers a broad array of topics.  This year's topics include:

• Hiring and monitoring the activities of "high-risk and recidivist brokers;"
• Sales practices, including protecting seniors, evaluating firm practices relating to reasonable-basis and customer-specific suitability, and monitoring product concentration;
• Excessive and short-term trading of long-term products, such as mutual funds and closed-end funds;