Friday, February 5, 2021 The recently issued 2021 Report on FINRA’s Examination and Risk Monitoring Program (the “Report”) replaces, and combines, two previously published FINRA reports – The Report on Examination Findings and Observations as well as the Risk Monitoring and Examination Program Priorities Letter. The Report addresses key regulatory topics in four categories: (1) Firm Operations; (2) Communications and Sales Practices; (3) Market Integrity; and (4) Financial Management. In particular, FINRA identified the following issues that impact many member firms. Regulation Best Interest (Reg BI) and Form CRS FINRA noted that in 2021 it intends to expand the scope of its review and testing in this area to engage in a more comprehensive review of firm processes, practices and conduct. FINRA provided a list of considerations its staff will use when examining a firm for compliance with Reg BI and Form CRS, and firms should make sure they have addressed those considerations and FINRA’s prior guidance in this area. FINRA also noted that it was in the “early stages” of review for compliance with these new obligations and thus the report does not contain exam findings or effective practices related to Reg BI and Form CRS. FINRA anticipates issuing a separate report after more examinations have been conducted. Firms should monitor FINRA’s further guidance in this issue.