FINRA Unscripted

This episode originally aired in December 2018.

When it comes to detecting insider trading, it really is like finding a needle in a haystack with more than 15,000 different stocks, options and bonds trading every day across millions of transactions. Yet, Sam Draddy and the Insider Surveillance team in the Office of Fraud Detection and Market Intelligence manage to find those needles.

The Insider Surveillance team does it by combining a lot of data—20 years’ worth of data on thousands of actively traded bonds, stocks and equity options—with a mix of sophisticated surveillance technology and good old-fashioned detective work.

On this episode of FINRA Unscripted Sam Draddy walks us through the process. Plus, he shares details of some of the most interesting cases of his career and attempts to answer the real question: why do people do it?

Resources mentioned in this episode:

SEC’s Edgar Database

Pro Golfer Agrees to Repay Trading Profits

SEC’s Perk Hixon Case

Did Somebody Just Eat a Post-It?

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How many Americans are investing in non-retirement accounts? How are they making decisions about where to put that hard-earned cash? How much do they truly understand about investing? And how has this all changed over time?

The FINRA Foundation’s latest study, Investors in the United States 2019, looks to uncover the answers to these questions and more to get a pulse on the investing habits of Americans

On this episode of FINRA Unscripted, Gerri Walsh, president of the FINRA Foundation and senior vice president of Investor Education at FINRA, and Gary Mottola, director of research at the FINRA Foundation, tell us more.

Resources mentioned in this episode:

Investors in the United States 2019

2018 National Financial Capability Study

38: Financial Capability Study, Part I: Does a Rising Tide Lift All Boats? 

FINRA Foundation

Investor Knowledge Quiz

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The 1920s was a period of great change and transition and the 2020s are shaping up to be the same—at least for FINRA’s Examination and Risk Monitoring program.

We’re kicking off the new Roaring 20s with three members of the Member Supervision senior leadership team to learn what to expect from the Examination and Risk Monitoring program in the year ahead.

On this episode of FINRA Unscripted, Ornella Bergeron, senior vice president of the carrying and clearing and diversified firm groups; Tom Nelli, senior vice president of exams and standards; and Bill St. Louis, senior vice president of the retail and capital markets firm groups, join us to tell us more.

Resources mentioned in this episode:

Episode 49: A Career Highlight: Exam and Risk Monitoring Program Transformation Update

Episode 45: Regulation Best Interest: Preparing for a New Standard of Conduct

FINRA Announces Senior Leadership Team Under New Examination and Risk Monitoring Program Structure

FINRA Examination Program Improvements

A Few Minutes with FINRA: Creating a Single, Unified Examination Program

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In 2018, FINRA embarked on a large-scale transformation of its examination and risk monitoring program to make FINRA a more effective, agile and risk-focused regulator. A lot of progress has been made in the last year. 

The group is in the process of realigning around the business models of FINRA member firms, introducing a new single point of accountability and installing a new senior leadership team.

On this episode of FINRA Unscripted, Bari Havlik, Executive Vice President of Member Supervision, tells us more. 

Resources mentioned in this episode:

Episode 21: Introducing Bari Havlik

FINRA Examination Program Improvements

A Few Minutes with FINRA: Creating a Single, Unified Examination Program

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This episode originally aired in August 2018. 

Schoolhouse Rock taught us how a bill up on Capitol Hill becomes law. Unfortunately, they never got around to explaining how a FINRA rule proposal becomes regulation.

In this episode, Phil Shaikun from FINRA’s Office of General Counsel and Jonathan Sokobin, FINRA’s Chief Economist, fill that gap and explain how lawyers and economists are working together to ensure FINRA’s rules are as effective and as tailored as possible.

Plus, Shaikun and Sokobin give an inside look into how the FINRA Retrospective Rule Review process works, how rules are selected for review and the myriad of possible outcomes.

Resources mentioned in this episode:

Retrospective Rule Review
SEC Federal Register
FINRA Advisory Committees
Special Notice on Engagement
Regulatory Notice on Membership Application Process
Regulatory Notice and Comments on Outside Business Activities

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Hackathons aren’t new. Silicon Valley has been using them for years and they’ve become commonplace among technologists. But what about a Buildathon?

On this episode of FINRA Unscripted recorded at the first ever Buildathon in Boston, we hear from three leaders who pulled together a unique collaboration between FINRA, the private sector and academia. They discuss FinTech and the investor literacy landscape, how this event is different from other hackathons and why cross-sector partnerships can lead to better technology solutions.

Joining us on this episode are: Kevin McGovern, managing partner of Deloitte’s New England office; Charles Senatore, senior advisor at Fidelity Investments' Devonshire Investors unit; and Haimera Workie, the head of FINRA’s Office of Financial Innovation.

The Buildathon, part of FINRA’s Innovation Outreach Initiative, challenged some of the world’s best technology students at MIT and Harvard to solve common problems faced by everyday investors. On this episode, we learn more.

Resources mentioned in this episode:

Deloitte’s “Closing the gap in fintech collaboration”

FINRA Foundation’s National Financial Capability Study

FINRA Foundation and GLEC’s “New Evidence on the Financial Knowledge and Characteristics of Investors”

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The way Americans think about and plan for retirement is changing. Gone are the days when Americas drop out of the workforce at 65 and hit the golf course, according to the University of Pennsylvania Wharton School’s Dr. Olivia S. Mitchell, the 2019 recipient of the Ketchum Prize. Sitting at home for 30 years or longer simply isn’t financially viable anymore. 

Dr. Mitchell’s research into the evolving world of retirement security earned her the 2019 Ketchum Prize, the FINRA Foundation’s highest honor, which looks to recognizes outstanding service and research to advance investor protection and financial capability in the U.S.

On this episode of FINRA Unscripted, Dr. Mitchell walks us through her research into everything from pensions, Social Security, annuities and more, and discusses how the issues have changed – and what Americans can do about it. 

Resources mentioned in this episode:

FINRA Foundation Awards 2019 Ketchum Prize

Dr. Mitchell’s Latest Research

Knowledge@Wharton High School

Follow Dr. Mitchell on Twitter

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Next year, brokerage firms will have to comply with a new standard of conduct when working with retail clients with the implementation of the U.S. Securities and Exchange Commission’s new Regulation Best Interest. 

If you haven’t yet had time to comb through the 1,363 page rule package, on this episode we have FINRA’s Chief Legal Officer Bob Colby walk us through the rule and steps FINRA member firms will need to take to prepare for its implementation. 

Resources mentioned in this episode:

SEC Small Entity Compliance Guide

FINRA Reg BI Resource Page

Reg BI and Form CRS Checklist

Regulation Best Interest Conference

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What happens if a brokerage firm doesn’t report trading information appropriately? At first, it might seem like it isn’t a big deal – just a data issue. But is vital. Accurate market data is at the foundation of FINRA’s efforts to ensure the integrity of our markets.

On this episode of FINRA Unscripted, we are joined by Lizzie Hogan, senior vice president of Market Regulation Enforcement, to learn what her group does, how it fits under the broader Enforcement team umbrella and why market data cases matter.

Resources mentioned in this episode:

FINRA Enforcement Group Structure

Episode 9: Introducing FINRA’s New Enforcement Team

Disciplinary Actions Online

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It’s easy for any company to get caught up in the status quo, too busy focusing on the challenges of today to anticipate the challenges of tomorrow. The Createathon, FINRA’s take on a hackathon, looks to prevent that by allowing employees across the organization a chance to step away from their day jobs to think differently.

On this episode, we speak to two members of FINRA’s Technology team to hear how the Createathon keeps FINRA innovating and helps break down silos across the organization. Then, we talk to the winning team of the 2019 Createathon to hear about their idea and what the event means to them.

Resources mentioned in this episode:

FINRA Open Source

FINRA Technology

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