The Financial Industry Regulatory Authority plans to conduct “preparedness” exams on broker-dealers to assess their compliance with Regulation Best Interest, according to the self-regulator’s CEO, Robert Cook.
At FINRA’s Senior Investor Protection Conference in Washington on Tuesday, Cook said that “as we get closer to the [Reg BI] deadline, we will be building into the scope of some of the reviews that we’re doing … a conversation about how’s a firm getting ready to comply [with Reg BI].”
He continued: “We just want to make sure we understand what some of the challenges that firms are facing at this stage and where they might be needing more guidance.”
After assessing BDs’ Reg BI compliance status, Cook said, FINRA will be prepping for Reg BI exams by “working closely” with the Securities and Exchange Commission.
Reg BI’s compliance date is June 30, 2020.