Annual FINRA report details areas of regulatory focus for 2022


Investing and managing finances is no longer limited to people of significant wealth, large businesses and those who are experienced in the ins and outs of the markets. There are benefits to this as people who were previously left to rely on others for advice and guidance can learn on their own and make decisions that they believe are in their best interests.

Still, there are risks involved, and they go beyond the possibility that a stock will decline. There are advisers and wealth managers whose objective is to make as much money as possible for themselves and have no concern about their clients to the point that they behave unethically or outright illegally. This concern should be understood and addressed if people have been taken advantage of.

FINRA report focuses on mobile apps and SEC compliance

Recently, FINRA released a report about potential problems in the financial industry and what it is focusing on in 2022. At the forefront are mobile apps and whether money managers comply with the SEC’s fundamental regulations.

Regarding mobile apps, the worry centers on the opening of accounts and how activity is overseen. These apps are problematic because they are giving advice to retail investors that may diverge from what would be appropriate for their goals and how much risk they are willing to take. It also assesses the use of social media to attract new app users.

Another area of focus is companies’ employee education to shield clients’ “trusted contact” information. Trusted contacts are notified when there is suspicion of financial impropriety and the client cannot be reached. A primary consideration with trusted contacts is the elderly because they are frequent victims.

Suspected victims should be aware of the FINRA report and act accordingly

Since FINRA is looking at these issues, it is wise for investors to be aware of how they might have been impacted by improper behavior that could have cost them their investment and more. FINRA may be trying to address this now, but those who were victimized need to know their options through securities litigation.

When there is a belief that wrongdoing has occurred, there are steps to take to try and recover what was lost. Having assistance from experienced professionals can be helpful to achieve a positive result.