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ARTICLE · 15 AUGUST 2012

FINRA Commences Sweep Request Relating To Conflicts Of Interest

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In recent years, FINRA has frequently expressed concerns about conflicts of interest in the financial services industry.

United StatesFinance and Banking
Daniel Nathan
Daniel Nathan
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In recent years, FINRA has frequently expressed concerns about conflicts of interest in the financial services industry. FINRA is now conducting a sweep of firms to review how firms identify and manage their conflicts of interest. FINRA sent its "Targeted Examination Letter" to a number of firms in July 2012, seeking information by September 14, 2012. The letter also requests a three-hour follow-up meeting during the fourth quarter of 2012 with the firms' executive business and compliance staff. FINRA's focus, according to the letter,1 is the firms' approaches to conflict identification and mitigation. FINRA wants to know the most significant conflicts each firm is currently managing, and the processes the firms have in place to identify and assess whether their business practices put the firm's or its employees' interests ahead of those of its customers.

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