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6 Top Reg BI Compliance Failures: FINRA

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Related: 5 Hot Topics for FINRA Exams in 2022

In its initial exams for compliance with Regulation Best Interest, the Financial Industry Regulatory Authority found a bevy of deficiencies.

Reg BI became effective on June 30, 2020, and 2021 marked the first full calendar year during which FINRA examined how broker-dealers have implemented the rule.

In its 2022 exam report, released Wednesday, FINRA cites those deficiencies and states that it will share further findings as the regulator continues to conduct exams and gather additional information on firms’ practices.

FINRA CEO Robert Cook said on Jan. 21 that FINRA will also be looking this year at its rules in light of Reg BI, and that some FINRA rules may need to be reevaluated because they were adopted before Reg BI.

Read the gallery above for the six primary areas where FINRA says broker-dealers are falling short in their compliance with Reg BI.