In a letter released to member firms on March 9th, FINRA announced many of its exam priorities for the 2009 exam cycle. While FINRA is not limited to only focusing on compliance in these areas during a routine exam of the firm, the fact that they're letting firms know some things they view as important should be cause for firms to review their compliance in these areas before the regulators come in.
The list includes the typical items such as variable annuities, net capital, senior investor issues, anti-money laundering and overall supervision. It also includes some areas that get higher scrutiny during a turbulent economy, including alternative investments, cash alternatives, the foreign corrupt practices act, unregistered sales of restricted securities (including penny stock liquidations), etc.
Compliance officers and supervisors should take a few moments and review the list of priorities for this year. Forewarned is forearmed.
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