FINRA Forward and the New Reality of Cyber Risk
Cyber exposure and fraud risks are no longer side issues for financial firms but rather can quickly escalate to existential business threats. FINRA’s Forward initiative recognizes that protecting market integrity requires the same vigilance and collaboration as traditional financial supervision.
The centerpiece of this initiative is FINRA’s expanded focus on combating cybersecurity and fraud risks, designed to equip every member firm, regardless of size, with the resources, intelligence, and preparedness they need to remain resilient.
Key Elements of FINRA’s Approach
- Modernizing FINRA Rules. FINRA is conducting a broad review of its rules to modernize requirements, facilitate innovation and eliminate unnecessary burdens.
- Empowering Member Firm Compliance. FINRA is working to enhance how it supports member firm compliance to better protect investors and safeguard markets.
- Combating Cybersecurity and Fraud Risks. FINRA is expanding its cybersecurity and fraud prevention activities to support member firms’ risk management capabilities and resilience against emerging threats and to better protect member firms and their investors from harm.
FINRA is moving beyond compliance oversight to become a catalyst for sector-wide resilience. Firms that align early with these initiatives will not only stay ahead of regulatory expectations but also build stronger trust with customers and investors.