That’s why there exists an entity that oversees all those obligations – namely, the Financial Industry Regulatory Authority (FINRA audit). It’s a self-regulatory organization that works directly under the auspices of the United States’ Securities and Exchange Commission (SEC).
For broker-dealer firms, meeting all the requirements outlined by FINRA goes beyond simply passing its annual exam. Instead, they need to be continually maintaining certain kinds of written supervisory procedures, keeping proper books and records, monitoring employee activities, protecting sensitive customer information, and responding to changes made by regulators over time. If firms fail at any point, then they open themselves up to being subject to enforcement action – potentially involving large financial penalties and other forms of restriction.
Indeed, the amount of money in fines and disgorgement orders issued by the agency speaks volumes about how important compliance remains to regulators. According to the regulator’s 2025 Key Statistics, FINRA ordered $99.6 million in fines and disgorgement against member firms and individuals while filing 625 disciplinary actions during the year. The latter came as a result of various violations, including inadequate supervision and recordkeeping failures, cybersecurity and compliance issues, among others.
Learn about FINRA compliance – what it is, who has to comply, what the key regulatory requirements are for broker-dealers, how FINRA exams are performed, common compliance issues faced by firms, and much more in this guide.
Source: https://qualysec.com/finra- ...
