The Financial Industry Regulatory Authority has launched aconflict-of-interest sweep, and is telling broker-dealers tocompile a bunch of information and prepare for face-to-facemeetings with FINRA exam personnel.

FINRA says the sweep is just a way to “better understand” BDscurrent practices, but lawyers with BD clients suggest potentialenforcement actions may be brewing.

In a July targetedexamination letter, FINRA told BDs it is reviewing how firmsidentify and manage conflicts of interest, and as part of thereview FINRA examiners want to meet with executives and compliancestaffers to discuss the firm’s approach to “conflict identificationand mitigation.”

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.