The Securities and Exchange Commission needs to take steps to improve its oversight of the Financial Industry Regulatory Authority, according to the Government Accountability Office.
Reviewing FINRA’s regulatory work, GAO said Wednesday, “is critical to SEC’s mission of protecting investors and maintaining fair, efficient markets.”
For instance, SEC reviews FINRA’s examinations of securities firms and may identify deficiencies.
However, GAO said that it found that the “SEC doesn’t have documented procedures for determining which deficiencies—and FINRA responses—to track.”