SEC, FINRA Priorities: 7 Steps to Stay Compliant

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Some eight weeks into 2023, both the Securities and Exchange Commission and the Financial Industry Regulatory Authority have published their lists of examination and enforcement priorities for the year.

According to a panel of compliance experts convened for a recent Smarsh webinar, the 2023 lists of priorities from both FINRA and the SEC are collectively longer and more involved than any that have come before — and compliance professionals from across the financial services industry are feeling the pressure.

Speakers on the webinar included Elin Cherry, the CEO of the compliance consulting firm Elinphant LLC; Robert Cruz, a vice president of information governance for Smarsh; and Tiffany Magri, a Smarsh regulatory advisor. As the trio pointed out, FINRA’s priorities report alone stretches to some 75 densely packed pages, while the SEC’s guidance clocks in at a more modest but still sizable 30 pages.

All in all, that makes more than 100 pages of “incredibly important and often difficult reading,” Cherry warned.

“The truth is that, as a compliance professional, I am actually a little disappointed by how bulky these reports are becoming, especially in FINRA’s case,” Cherry said. “In practice, it is becoming very challenging for firms to respond and adequately digest all the data and the new items included in these reports.”

Sadly, the panel agreed, the increasing complexity of the world of financial services suggests the issue is likely to get worse rather than better in the years ahead. Fortunately for firms’ compliance leaders, however, there exist a number of reliable methods for keeping up with the SEC’s and FINRA’s evolving expectations.

While the process of enacting compliance updates is never going to be easy, the panel agreed, these strategies can help compliance leaders make sure no pressing issues fall through the cracks. See the slide show for a rundown of the panel’s top compliance tips for 2023.

(Image: Adobe Stock)

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