At the request of member firms (according to FINRA), FINRA has now released its 2019 Reports on Examination Findings summarizing key findings from member exams. Different from earlier reports (2017 and 2018), this time around, FINRA says it wanted to make clearer the distinction between exam findings (violations of SEC, FINRA rules) and observations (suggestions for improving control environment).
FINRA’s stated goals are to identify issues and advise members of effective practices that can address deficient compliance programs in areas covering sales practice and supervision, firm operations, market integrity, and financial management. While the list contains many of the usual deficiencies, it also includes specific and noteworthy observations about how to strengthen compliance in these areas, including
supervision and document requirements
Suitability Rule violations
Digital Communication Use
Anti-Money Laundering (AML)
Uniform Transfers and Grants to Minors Accounts
Business Continuity Plans
Fixed Income Mark-up Disclosure
Direct Market Access Controls
Liquidity and Credit Risk Management
Segregation of Client Assets
Net Capital Calculations
A link to the report can be found here.