FINRA Conference 2023: Well-Rounded, Well-Attended and Worthwhile

Industry leaders and experts converged in Washington DC at the Financial Industry Regulatory Authority (FINRA) conference recently to discuss the latest developments and challenges facing the financial services industry. The conference covered a wide array of topics, from regulatory updates to technological innovations and best practices for compliance.

For me, one of the key takeaways of the conference was the importance of staying up to date on compliance best practices and regulations. With the rapid pace of technological innovation and growing complexity of financial products and services, today more than ever, firms need robust compliance programs to ensure they’re operating within the boundaries of the law, while protecting clients’ interests.

A key regulatory focus of the conference was Regulation Best Interest (Reg BI). This regulation, which went into effect on June 30, 2020, requires broker-dealers to act in the best interests of their clients when making investment recommendations, avoid conflicts of interests, and operate transparently. A number of speakers at the conference urged firms to review their compliance programs to ensure they’re meeting all the requirements of RegBI, especially around the Care Obligation, which has proven to be a problem for some firms. Firms are falling short in terms of making proper disclosures, and offering clients products that are truly suited to their needs.

The subject of ’cybersecurity’ garnered a lot of attention at the conference as well. As more transactions are conducted online through digital channels, firms must be vigilant in protecting data, systems, and ultimately clients, from cybersecurity threats. This requires firms to adopt strong security protocols, implement data security training, and stay up to date on the latest cybersecurity trends. The essential role of technology in driving innovation and improving efficiency was also a key focus, with discussions on artificial intelligence, machine learning, and blockchain taking center stage.

In addition to the anticipated technology and regulatory updates, the conference program also emphasized the importance of diversity, equity, and inclusion. Speakers encouraged firms to be proactive in encouraging diversity and inclusion, by hiring and promoting employees from diverse backgrounds and by creating cultures that foster inclusivity and value diversity.

Overall, I found this year’s FINRA conference to be well-rounded, well-attended and definitely worth attending!