The Financial Industry Regulatory Authority (FINRA) released its 2024 FINRA Annual Regulatory Oversight Report this week, which provides a synopsis of recent regulatory activity that member firms can use to better their compliance processes. The report examines 26 compliance-related themes and highlights the most important factors to consider for organizations’ compliance procedures.   

The report differs slightly from 2023 in that it includes updated content on crypto assets. FINRA provides considerations for firms that may desire to account for crypto asset-related risks, as well as advice for firms considering crypto asset-related activities. 

While the report highlighted the crypto-asset market in 2023 with respect to cybersecurity, the industry self-regulator said in this year’s report that it was monitoring salespeople and financial advisors involved in the promotion and sale of digital assets. 

Another important concern is cybersecurity. FINRA reported a rise in the diversity, frequency, and sophistication of certain cybersecurity incidents, such as the creation of imposter websites, insider threats, ransomware, and cybersecurity events at major vendors. 

Anti-Money Laundering (AML), Fraud, and Sanctions were also investigated. Member firms must have a written anti-money laundering (AML) program to monitor their compliance with the Bank Secrecy Act.   

Other important topics covered include Reg BI, Form CRS, and the Consolidated Audit Trail (CAT).