SEC Oversight of FINRA could be more robust, according to new report


The United States Government Accountability Office (GAO) released a report recommending additional oversight of FINRA by the SEC.

From the report, "While SEC has taken some actions, this report found that SEC’s risk-based oversight program could be more robust and consistent with risk-management and federal internal control standards. Specifically, SEC has yet to

• develop specific performance goals and measures, with corresponding targets to monitor its progress toward the goal of enhancing FINRA oversight;

• formalize procedures for documenting its oversight determinations, such as selecting FINRA areas for inspections and any changes made to planned oversight activities; and

• perform an assessment of internal risks, such as staff availability and competing priorities, to successfully meeting FINRA oversight program goals and objectives.

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