FINRA Compliance Overview

The United States regulates broker-dealers through the Financial Industry Regulatory Authority (FINRA) and sets rules that aim to protect investors and the integrity of the financial market. FINRA requirements emphasize safeguarding sensitive customer data, recordkeeping and supervision, and the integrity of data used in regulatory reporting and day-to-day operations.

Why It Matters

FINRA compliance is a key expectation for all firms based within the U.S. securities industry. Failure to comply with FINRA rules may lead to enforcement actions, fines, remediation obligations, or restrictions on business, and can negatively affect reputations. With developing regulation, companies will be subject to robust governance, supervision, and controls over sensitive data.

Core Focus Areas

FINRA concentrates on safeguarding customer information; accuracy and full retention of records; supervisory controls; and the ability to monitor, detect, and respond to data-related risks. Organizations are required to transparently maintain data ownership, enforce appropriate access controls, and ensure sensitive information is handled securely across systems, users, and communication channels.

Next Steps

Organizations re-evaluating their FINRA posture often focus on increasing their visibility into sensitive data, enhancing governance and supervision, and building in security controls that further enable ongoing compliance and regulatory examinations.