avoid the audit trap

against a large investment firm for systematic anti-money laundering compliance failures2

$17,000,000

fine for one of the world's largest brokerage firms for systemic reporting, books and records, and related supervisory violations1

$2.8 Million

against a large investment firm and $250,000 against a financial services firm for failure to establish policies and procedures necessary to determine the amount of commissions their clients were being charged when sub-advisers “traded away” with a broker-dealer outside the wrap fee programs2

$600,000

Contact Kwame.Essieh@eaiinfosys.com to learn more about flexible, integrated compliance,

data aggregation, and commissions processing tools from EAI.

Avoid the Audit Trap

FINRA filed about 1500 disciplinary actions, including...

CybersecurityAML (particularly with respect to

microcap companies)

Senior citizens (particularly with respect

to POAs and trusted contact persons)

Conflicts of interest with respect to

investment advisors

Using data analytics to analyze complex products and embedded

derivatives

Insider tradingAccounting

issues

Cybersecurity, including cyber-related disclosure failures

1 FINRA2 SEC3 Ze’-ev Eiger, “The SEC and FINRA Preview 2017 Enforcement Priorities at SIFMA’s C&L

New York Regional Seminar,” The BD/IA Regulator, November 11, 20164 Ibid.

©2017 EAI Information Systems. All rights reserved.

2016

fine for a major discount brokerage for significant failures in required electronic records and email retention1

$2.6 Million

2017

against three registered advisers for failures in their compliance programs2

$120,000

FINRA enforcement priorities include:3

The SEC will focus on:4

The SEC filed 868 enforcement actions vs. 807 in 2015, including...

2016

Don’t become another notch in regulators’ belts

Record data quickly, accurately and securely

Efficiently and automatically manage broker/dealer risk and liability across multiple business lines

Get a single-screen view of data aggregated from multiple systems.

Automatically red-flag non-compliant or unsuitable transactions for increased scrutiny and document compliance reviews at varying levels

Access tools to simplify regulatory compliance, AML compliance, and commissions processing.

Surviving audits isn't getting any easier