SEC, NFA FINRA

Continuum GRC created the number one ranked IRM GRC audit software solution for SEC, NFA & FINRA audits that empowers you to prepare for an SEC, NFA & FINRA audit effectively while dramatically reducing costs in preparation for working with a third-party assessment organization.

Modules include:

FINRA SEC Cyber Security Report Card
FINRA - Small Firm Cybersecurity Checklist
COSO Summary of Deficiencies
COSO Enterprise Risk Management – Integrated Framework
COSO Internal Control-Integrated Framework

FINRA Compliance & SEC Compliance Services

FINRA (Financial Industry Regulatory Authority) ensures the integrity and fairness of the financial markets overall through specific rules and regulations that industry professionals, brokerage firms, and the like must adhere to.

SEC (Securities and Exchange Commission) rules are designed to safeguard investors by ensuring orderly, fair, and efficient securities markets, such as when trading around public companies.

Compliance programs for both authorities require stringent cybersecurity, recordkeeping, and regular audits (among other things). These are the key tools that help financial services firms maintain trust and transparency, and provide integrity and stability in the markets through an enterprise risk management solution.

Value of FINRA & SEC compliance

FINRA and SEC compliance are essential for maintaining trust in the integrity of the markets and the professionals involved in them. These regulations ensure fairness, transparency, and protect investors from fraud and misconduct. Being in regulatory compliance with these important standards serves a practical purpose in ensuring safe, ethical practices for investors and safeguarding the reputational standing of industry professionals and financial firms.

Being out of compliance can result in serious consequences. Investors may be harmed, fines can be imposed, and even serious legal consequences leading to imprisonment.

Staying in FINRA and SEC compliance adds security, safety, and prestige to the work of industry professionals.

FAQ

What are FINRA compliance services?

Becoming (and remaining) FINRA compliant involves several elements, beginning with examinations to ensure that rules are being followed by firms and individuals in the financial industry. An anti-money laundering (AML) plan must be developed and markets surveilled for things like insider trading. FINRA offers checklists to help stay on top of compliance requirements.

Importance of compliance culture in FINRA & SEC audits?

When ongoing SEC and FINRA compliance is emphasized by authority figures at the top, it makes audits much easier. Setting strong examples gets buy-in from employees who will take personal responsibility in addressing potential issues before they turn into potential violations and create financial or reputational penalties.

What does SEC compliance involve for financial firms?

Besides registering with the SEC, compliance for financial firms includes filing accurate and timely reports (annual, quarterly, and current) and maintaining a strong cybersecurity posture. They must establish programs to prevent money laundering and terrorist financing. They must also disclose information on their business operations.

What is the difference between FINRA and SEC compliance?

Both are guidelines designed to promote transparency, fairness, and ethics in the financial industry.

FINRA compliance is a scope of regulations meant to guide brokerage firms, agents, and related professionals. SEC compliance covers a broader range: the securities industry overall, public companies, broker-dealers, and other investment advisors.

How do you prepare for a FINRA & SEC audit?

The most important step is to establish a robust compliance program and follow it regularly before any audits. Thorough record keeping, including things like incident reports and written supervisory procedures, will make official audits go much faster and more smoothly. Conduct internal risk assessments to identify and address security gaps and potential problems.

What documents and records are reviewed during a FINRA & SEC audit?

During these audits, financial statements, trade blotters, accounting records, capital account ledgers, and asset/liability ledgers will be examined. Customer-related records, such as order tickets, trade confirmations, and complaints will also be looked at. Naturally, records around compliance, supervisory procedures, and employee records are part of the process.

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