The Securities Compliance Podcast Episode 12 - Examinations and Enforcement (Lessons From The Front Lines) 

Podcast

Securities Compliance Podcast: Compliance in Context

The 12th episode of the Securities Compliance Podcast: Compliance in Context discusses practical advice and takeaways that focus on a real-life, tough lessons other compliance professionals and regulators have learned on the front lines of their industry.

For the interview segment, host Patrick D. Hayes welcomes in Ed Wegener, the former Senior VP and Midwest Regional Director of FINRA to discuss some real lessons learned on the front lines of the investigation and enforcement process.

Please tune in and subscribe for future episodes at ComplianceInContextPodcast.com.

Episode 12 Topics:

Headlines

• Reviewing the life cycle of a regulatory investigation

• Analysis of findings from routine examinations, cause examinations or enforcement investigations.

• Use of data analytics in the investigation process

• Conclusion of the Investigation

• Referral to enforcement and escalation of findings

• Enhanced focus on the impact the supervisory process and requisite due diligence of products, OBAs, private transactions, borrowing from customers, etc.

• Discussion of policies and procedures and related training protocols

• How does the firm monitor for compliance with its policy?

• Reviewing the FINRA 2021 Annual Regulatory and Exam Priorities

• Industry innovations to enhance the process of investigations and enforcement

Quotes

“When they do conduct an examination, they have been getting really good at taking that information that they gather through things like electronic blotters—putting that through their analytical systems and using that to identify areas of potential focus. And so the way we used to think about it was, it’s trying to find needles in haystacks and the analytics aren’t necessarily going to find the needles for you, but they're going to tell you that if there are needles they're probably in this part of the haystack.”

“I think as an examiner at FINRA, what I really want to know is not particularly what I find on the examination, but when I leave the firm, what are they going to be doing to make sure they have controls over the risks that I’m concerned about.”

“You know it’s interesting I’m not sure that Reg BI is changing the landscape in terms of that from the perspective of really understanding the products that you're selling. I think there's always been that expectation, you know whether it was reasonable basis—suitability requirement or the care obligation with respect to Reg BI but the important thing is that firms before they start recommending products that they understand those products. They understand the features and the risks and that the people who are selling them understand them as well.”

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About the Securities Compliance Podcast: Compliance in Context

Introducing the Securities Compliance Podcast, "Compliance in Context" presented by Calfee, Halter & Griswold and the National Society of Compliance Professionals and hosted by Patrick D. Hayes, Senior Counsel and leader of Calfee's Investment Management practice.

Designed as a personal master class for the securities legal and compliance professional, this podcast embodies Patrick’s passion to help you put Compliance In Context™ by combining the technical expertise of industry thought leaders and innovators with the practical experience of doers and key decision makers.

Listeners will find the podcast on Apple Podcast, Google Podcast, Spotify and Stitcher.

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The opinions expressed by guest speakers and panelists during Securities Compliance Podcasts may not necessarily reflect the viewpoints of the attorneys and professionals of Calfee, Halter & Griswold LLP or its subsidiaries or affiliates. Calfee’s educational content is intended to inform and educate readers about legal developments and is not intended as legal advice for any specific individual or specific situation. Please consult with your attorney regarding any legal questions you may have. With regard to all content including case studies or descriptions, past outcomes do not predict future results.