The Financial Industry Regulatory Authority’s Board plans to consider at its May 10 meeting proposed rule amendments and other steps to heighten the oversight of high-risk brokers and the firms that employ them.
The board also plans to mull issuing additional guidance on supervision requirements related to high-risk brokers.
Zeroing in on firms’ hiring and monitoring of high-risk and recidivist brokers, including whether firms establish appropriate supervisory and compliance controls for them, was included among the self-regulator’s top exam priorities for 2017.
FINRA recently set up a special exam unit to identify and examine brokers who may pose a high risk to investors.