The Financial Industry Regulatory Authority said Thursday that it has appointed a senior leadership team to head its new examination and risk monitoring structure, a move that marks the consolidation of broker-dealer regulator’s three exam functions into a single, unified program.
The exam functions previously were divided among three programs responsible for business conduct, financial and trading compliance.
“The consolidation brings those programs under a single framework designed to better direct and align examination resources to the risk profile and complexity of member firms,” FINRA said.
“Our commitment to our mission of protecting investors and market integrity has guided us throughout this process,” Bari Havlik, executive vice president of Member Supervision and head of exams, said in a statement. “Implementing a unified program structure will help make us a more agile and risk-focused regulator, able to direct our expertise and resources in a more tailored way. As a result, we expect to continue to become more effective at examining firms for compliance and protecting investors.”
All FINRA member firms are now grouped into one of five main firm business models: Retail, Capital Markets, Carrying and Clearing, Trading and Execution, and Diversified.
Each of the groups, which is headed by a senior leader, has several subgroups to more precisely categorize firms with similar business models and activities.
Each firm will be assigned a single point of accountability, the leader who has ultimate responsibility for the ongoing risk monitoring, risk assessment, planning and scoping of examinations tailored to the risks of a firm’s business activities.