Tag: Risk Assessment and Management

It has been an exciting year for Securities Compliance Management (“SCM”)

The Ultimate Solution for Compliance Management

Posted on by SCM Communications

It has been an exciting year for Securities Compliance Management (“SCM”). The Firm has successfully: Initiated numerous New Membership Applications (“NMAs”) for new firms seeking the Financial Industry Regulatory Authority’s (“FINRA”) approval, Initiated several Continuous Membership Applications (“CMAs”) for existing firms that are planning to undergo a material change in their line of business operations, Partnered with new broker-dealer and registered investment advisor firms to assist them with their FinOp and/or compliance programs, and Assisted in the buy/sell of existing broker-dealer firms. Along with the new relationships that Securities Compliance Management has established this year, the Firm is also incredibly Read more about The Ultimate Solution for Compliance Management[…]

Examinations and Risk Monitoring

Examination and Risk Monitoring: What to Expect in 2020

Posted on by SCM Communications

FINRA recently released a podcast called “What to Expect: The 2020 Exam and Risk Monitoring Program“. It provides a wealth of information from three members of the Member Supervision Senior Leadership on what to expect from the Examination and Risk Monitoring program in 2020. Here are a few highlights from the podcast. Read More…

Customer Identification Program (CIP): Common Questions – Part II

Posted on by SCM Communications

[Continued from Customer Identification Program (CIP): Common Questions – Part I]

What Is A “Reasonable Time” To Verify Customers’ Identities?

A customer’s identity must be verified within a “reasonable time” before or after the customer’s account is opened. The rule does not specify what counts as a “reasonable time,” and the Adopting Release for the Broker-Dealer CIP Rule emphasizes that broker-dealers must be reasonably flexible when undertaking such verification. The broker-dealer must be able to undertake verification before or after an account if opened, as the amount of time needed may depend on various factors, which is part of the firm’s risk assessment.  A firm’s CIP procedures must enable the broker-dealer to form a reasonable belief that it knows the true identity of each customer. Read More…

RegTech: Regulatory Intelligence & Risk Management and Assessment

Posted on by SCM Communications

This blog post is the third and final entry in our series on the five major areas of Regulatory Technology (RegTech) tools as determined by FINRA: surveillance and monitoring, customer identification and anti-money laundering (AML) compliance, regulatory intelligence, reporting and risk management, and investor risk assessment. If you missed our previous entries on how the financial services industry is using RegTech tools to keep up with their regulatory compliance requirements, they can be found at “RegTech: Surveillance and Monitoring” and “RegTech: Customer Identification and AML Compliance”. Our final entry will address the areas of regulatory intelligence, reporting and risk management, and investor risk assessment. Read More…