FINRA Unscripted

As the crypto asset space has grown, FINRA has evolved its oversight of the crypto asset activities of FINRA member firms and their associated persons. In this second episode of a three-part series covering FINRA's crypto asset-related regulatory work, we hear from Jamie Udinson, Senior Director of the Crypto Asset Investigations team, Taylor Etzell, a Senior Principal Investigator, and Jason Foye, Senior Director and head of FINRA's Crypto Hub, who provide insight into FINRA's Crypto Asset Investigations Team. We learn more about this dedicated group of investigators specializing in conducting complex crypto asset investigations and the crucial role it plays in ensuring compliance with existing rules and regulations in the crypto asset space.Resources mentioned in this episode:Episode 71: Overlapping Risks, Part 1: Anti-Money Laundering and CybersecurityEpisode 72: Overlapping Risks, Part 2: Anti-Money Laundering and Elder ExploitationEpisode 117: Membership Application ProgramEpisode 136: An Introduction to FINRA’s Crypto Asset Work and the Crypto HubRule 3270: Outside Business Activities of Registered PersonsRule 3280: Private Securities Transactions of an Associated PersonFINRA Blog: An Inside Look into FINRA’s Crypto Asset Work Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

In 2022, FINRA developed an enterprise-wide strategy to ensure it is prepared for an evolving crypto asset regulatory landscape and created the Crypto Hub, the Blockchain Lab and the Crypto Asset Investigations Team. On this episode, the first in a three-part series, we sit down with Omer Meisel, Senior Vice President of the Complex Investigations and Intelligence Group, Jason Foye, Senior Director and Head of FINRA's Crypto Hub, and Reema Abdelhamid, a Director with FINRA Enforcement to learn more about the strategy and the role of the Hub and FINRA’s work to advance its mission of investor protection and market integrity.Resources mentioned in this episode:FINRA Blog: An Inside Look into FINRA’s Crypto Asset WorkSEC’s SPBD December 2020 StatementSEC’s September 25, 2020 No-Action Letter, “ATS Role in the Settlement of Digital Asset Security Trades”Crypto Asset Communications Exam Letter – November 2022FINRA and NFA Joint Press ReleaseReg Notice 20-23: Activities Related to Digital AssetsReg Notice 21-25: Continued Engagement in Activities Related to Digital AssetsEpisode 112: FINRA's Complex Investigations and Intelligence Team & Cyber and Analytics UnitEpisode 113: Regulatory Operations: Stronger Regulation Through Integrated OversightEpisode 117: Membership Application ProgramEpisode 134: Gen Z Investor AttitudesFINRA Foundation Report: Gen Z and InvestingInvestor Insights: What Is a Blockchain, and Why Should I Care? Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

The best tool FINRA provides when it comes to firms developing their annual compliance program is now available. The 2023 Report on FINRA’s Examination and Risk Monitoring Program provides key insights and observations on two dozen key regulatory topics, making it a must-read for compliance professionals. On this episode, Ornella Bergeron, Senior Vice President of Risk Monitoring, Michael Solomon, Senior Vice President of Examinations, and Bill St. Louis, Executive Vice President of the National Cause and Financial Crimes Detection Programs (NCFC), join us to dig into some of the new and noteworthy topics in the latest report. Resources mentioned in this episode:2023 Report on FINRA’s Examination and Risk Monitoring ProgramEpisode 112: Introducing FINRA’s Complex Investigations and Intelligence Team and Cyber and Analytics UnitEpisode 71: Overlapping Risks, Part 1: Anti-Money Laundering and Cybersecurity Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

The new Complex Investigations and Intelligence (CII) team and Cyber and Analytics Unit (CAU) are driving a shift in terms of how Member Supervision’s National Cause and Financial Crimes Detection Program comes at its work and leverages intelligence and analytics to drive decision making and operations. On this episode, we hear from Omer Meisel, Vice President of CII, and Brita Bayatmakou, Senior Director of CAU, about how these changes will help FINRA better deliver on its mission of investor protection, market integrity.Conferences and EventsEpisode 86: FINRA’s Financial Intelligence UnitEpisode 72: Overlapping Risks, Part 2: AML and Elder ExploitationFBI Cyber Threat Briefing Series Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

The COVID-19 pandemic disrupted many facets of American life but did not derail a trend toward increasing financial capability. Still, not all Americans are benefiting equally from improvements in financial wellbeing, according to the new FINRA Foundation Financial Capability Study. On this episode, Gerri Walsh and Gary Mottola of the FINRA Foundation join us to delve into the latest results of this nationwide, triennial study and their implications for the financial industry, researchers, policymakers and more.Resources mentioned in this episode:2021 National Financial Capability StudyFINRA FoundationFinancial Literacy QuizEpisode 38: 2018 Financial Capability Study, Part I: Does a Rising Tide Lift All Boats?Episode 39: Financial Capability Study, Part II: Tracking Shifting Currents of Financial Well-Being Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

Every year, millions of seniors become victims of financial exploitation, resulting in billions of dollars in losses. That's just one reason why the protection of these investors is a top priority for FINRA. On this episode, we hear from FINRA’s Office of General Counsel’s Jeanette Wingler and Jim Wrona about how FINRA Rules 4512 and 2165, the first uniform national senior investor protection standards, can help broker-dealer firms and representatives protect their senior and other vulnerable adult customers. How are we doing? Take the FINRA Unscripted survey today. Resources mentioned in this episode:Rule 2165Rule 4512Episode 16: How FINRA Rules Get Made (and Reviewed)Securities Helpline for Seniors®FINRA Foundation Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

A broker-deal firm’s anti-money laundering efforts may overlap with any number of other regulatory concerns. On the last episode, we looked at the intersection of a firm’s AML and cybersecurity risks. On this episode, the second in a two-part series, we’re looking at how AML may overlap with a firm’s efforts to protect senior investors from exploitation and fraud.Joining us on this episode are Jason Foye, a director with FINRA's Anti-Money Laundering Investigative Unit, and Brooke Hickman, a director with FINRA's Vulnerable Adults and Seniors Team (VAST), both with FINRA’s National Cause and Financial Crimes Detection Program. Resources mentioned in this episode:FinCEN February 2011 Advisory on Filing SARs Regarding Elder Financial ExploitationSARs on Elder Financial Exploitations: Issues and Trends, CFPBDOJ’s Elder Justice InitiativeFINRA Resources on Senior InvestorsFINRA Securities Helpline for SeniorsFINRA Foundation – Aging and Financial Decision Making FINRA Investor AlertsVirtual Conference Panel: Social Distancing and the Impact on Older InvestorsVirtual Conference Panel: Financial Crimes, Trends and Responses In the Midst of the PandemicEpisode 33: Money Laundering in the Securities IndustryEpisode 34: AML Priorities and Best Practices Episode 71: Anti-Money Laundering and Cyber Security Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

Firm regulatory risks and priorities don't exist in a vacuum. And that is perhaps nowhere clearer than when it comes to a firm's anti-money laundering responsibilities. A firm's AML risks can overlap with any number of other priorities. On this episode, the first of a two-part series, we're looking at the intersection of a firm's AML and cybersecurity risks. Joining us are Jason Foye, a director with FINRA's Anti-Money Laundering Investigative Unit, and Dave Kelley, a director with FINRA's Cybersecurity Specialist Program, both with FINRA’s National Cause and Financial Crimes Detection Program. Resources mentioned in this episode:Episode 60: Introducing Greg Ruppert and the NCFCEpisode 33: Money Laundering in the Securities IndustryEpisode 34: AML Priorities and Best Practices SWIFT: How Cyber Attackers ‘Cash Out’ Following Large-Scale HeistsFinCEN October 2020 Advisory on Ransomware FinCEN July 2020 Advisory on CybercrimeFinCEN October 2016 Advisory on Cyber Events Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

As of June 30, 2020, the U.S. Securities and Exchange Commission’s Regulation Best Interest—or Reg BI—is officially in effect. That means brokerage firms now have to comply with a new standard of conduct when working with retail clients.On this episode we talk to Meredith Cordisco and Jim Wrona of FINRA’s Office of General Counsel about what a post implementation date world looks like for FINRA member firms and what FINRA has been doing to train staff to ensure a consistent approach to examining around and enforcing the new rule across the organization.And listen to the end for a special surprise from Jim. Resources mentioned in this episode:SEC Reg BI Resource PageFINRA Reg BI Resource PageVirtual Conference Panel: Reg BI and Form CRS: Where Are We NowVirtual Conference Panel: Reg BI: Compliance Inspections and ExaminationsEmail questions: [email protected] Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

The world of money laundering is a fast-paced and ever evolving as we learned on the last episode of FINRA Unscripted. That can make it difficult for a financial firm to develop and maintain a robust anti-money laundering program. But maintaining a strong program is essential, making AML a perennial priority for FINRA’s examination staff. A robust AML program will not only safeguard the investing public and our financial markets, but it will also protect a firm’s reputation. On this episode of FINRA Unscripted, we are joined once again by Blake Snyder and Jason Foye of FINRA’s AML Investigative Unit to discuss current priorities and best practices when it comes to anti-money laundering regulation. Resources mentioned in this episode: FINRA Senior Helpline 2019 FINRA Priorities Letter FINRA CDD Rule Requirements Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

When three hapless employees inadvertently embezzle a bunch of cash in the movie “Office Space,” they decide the best way to cover it up is to launder it. But the thing is, they don’t even really know what money laundering is and they learned that even the dictionary couldn’t fill them in. If you want to understand what money laundering is, and more specifically, the efforts brokerage firms must take to prevent and detect it, stay tuned. We have something better than the dictionary: we have Blake Snyder and Jason Foye, two members of FINRA’s Anti-Money Laundering Investigative Unit. On this episode of FINRA Unscripted, Blake and Jason explain what money laundering is, how it looks different in the securities industry, how that makes regulation different for the securities industry, what FINRA’s Anti-Money Laundering Investigative Unit does and more. Resources mentioned in this episode: Key Topics: AML AML FAQs AML Half-Day Seminars Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

FINRA’s Central Registration and Depository (CRD) system is the central licensing and registration system not just for FINRA, but also for U.S. securities exchanges and all 50 states . But the system is still partying like it’s 1999. Twenty years after the CRD system’s last major update, FINRA is in the middle of a multi-year effort to overhaul the registration and disclosure system that is the backbone of the BrokerCheck, the free tool that allows investors to research the background of their financial professionals and firms. On this episode of FINRA Unscripted, FINRA’s executive vice president of Registration & Disclosure, Derek Linden, tells us more about the transformation and what users can expect. Resources mentioned in this episode: CRD Transformation Website Announcement: CRD Transformation BrokerCheck 12: How the Cloud Has Revolutionized FINRA Technology Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

The Annual FINRA Priorities Letter is a great resource for firms looking to improve their compliance, supervisory and risk management programs. But the 2019 Letter is a little different—this year focusing on materially new areas of focus so readers can better identify areas for program improvement. On this episode of FINRA Unscripted, we’re joined by Bari Havlik, FINRA’s executive vice president of Member Supervision, Steve Polansky, a senior director in Member Supervision, and Gene DeMaio, a senior vice president of options regulation and the trading and financial compliance exam program, to learn more about the changes to the letter and to drill into a few key topics. Stay tuned to hear more about new priorities such as fixed income mark-up disclosure and supervision of digital assets business, as well as some new takes on existing priorities, including suitability, best execution, market manipulation and more. Resources mentioned in this episode: 2019 Priorities Letter 2018 Priorities Letter 2018 Exam Findings Report Fixed Income Confirmation Disclosure FAQs SEC Statement on Digital Asset Securities Issuance and Trading SEC Issues Investigative Report on DAO Tokens Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

When it comes to detecting insider trading, it really is like finding a needle in a haystack with more than 15,000 different stocks, options and bonds trading every day across millions of transactions. Yet, Sam Draddy and the Insider Surveillance team in the Office of Fraud Detection and Market Intelligence manage to find those needles. The Insider Surveillance team does it by combining a lot of data—20 years’ worth of data on thousands of actively traded bonds, stocks and equity options—with a mix of sophisticated surveillance technology and good old-fashioned detective work. On this episode of FINRA Unscripted Sam Draddy walks us through the process. Plus, he shares details of some of the most interesting cases of his career and attempts to answer the real question: why do people do it? Resources mentioned in this episode: SEC’s Edgar Database Pro Golfer Agrees to Repay Trading Profits SEC’s Perk Hixon Case Did Somebody Just Eat a Post-It? Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.

Looking to break into the financial services industry? It is about to get easier. On October 1, 2018, FINRA will launch a new exam that consolidates the fundamental knowledge shared across several of FINRA’s existing Series exams into a single Securities Industry Essentials (SIE) exam. Additional “top-off” exams, such as the Series 7, will be trimmed down to focus only on the specific knowledge needed for that qualification—eliminating overlap in licensing exams and creating a more efficient program. And the biggest change: you don’t have to be associated with a financial firm to take the SIE exam. So get your number two pencils ready and tune in to this episode of Unscripted, where John Kalohn, FINRA’s Vice President of Testing & Continuing Education, joins us to provide insight that just might help you ace the SIE exam. Resources mentioned in this episode: Registered Representatives Brochure SIE Exam Content Outline Find us:  LinkedIn / X / YouTube / Facebook / Instagram / E-mailSubscribe to our show on Apple Podcasts, Google Play and by RSS.