In Regulatory Wrap for the week to January 31, we extract the need-to-know details from FINRA’s Annual Regulatory Oversight Report for 2025.
In this week’s Regulatory Wrap, we touch on the key points highlighted in the Financial Industry Regulatory Authority’s (FINRA) Annual Regulatory Oversight Report, which include generative artificial intelligence (AI), the surveillance and retention of evolving communications, and social media risk.
1. One of the major themes is AI, with the report stating that firms must be vigilant in recognizing how cybercriminals can use generative (gen) AI to enhance cybercrimes, as well as emphasizing that it’s vital to capture results when using gen AI in communications with the public
2. Likewise, social media posts made be “finfluencers” who are working with a firm must be retained and supervised
3. FINRA stated that firms are still not retaining and reviewing non-email communications taking place on firm-approved channels, such as on SMS and instant messaging channels
4. Additionally, there has been “inadequate supervision” related to communications channels, including failures to identify indications of potential off-channel conversations
5. With FINRA highlighting persisting issues around communications supervision and capture, it’s vital that firms capture and monitor data across all business platforms
This week’s episode is brought to you by our Content Writer, Kathryn Fallah.
With AI, social media risk, surveillance, and recordkeeping high on FINRA’s list, firms must ensure they’re maintaining all avenues of communication to keep pace with the evolving industry.
