There are compliance concerns in every industry and it is FINRA in the financial industry. CASB solutions help in achieving FINRA compliance.
FINRA Compliance
The Financial Industry Regulatory Authority (FINRA) is a US-based independent regulator security firm. This is the financial instrument that helps stocks, bonds etc to be traded freely in the open market. FINRA has efficient broker-dealer regulations that protect the investors and maintains market integrity. This non-governmental non-profit organization ensures investor protection in the broker-dealer industry in a fair and honest manner. FINRA compliance is a must for financial firms.
Need for FINRA Compliance
FINRA is needed for the following reasons:
- To educate the investors about the dealings
- To maintain transparency in the stock market
- To govern rules and policies for brokers and dealers
- To confirm compliance by the companies
There was aggressive vigilance in the year 2016 and severe disciplinary actions were taken against the erring registered brokers and the firms. The harmed investors were compensated by the fines collected from the firms. The insider trading cases and the frauds were referred to SEC and other agencies so that the litigation and prosecution could be pursued against them.
Importance of FINRA Compliance
FINRA regulation enforces higher ethics standards to regulate the market by bringing in the required resources and expertise; thus enhancing the investor safety as well as the market integrity. Thus, it plays a crucial role in US financial system at no such cost to the taxpayers. Every investor would want a fair financial market in the US and FINRA tries to achieve just that.
- All investors have to receive the basic protection in the equity market
- Security product seller has to be tested, qualified and licensed
- The security product advertisement has to be truthful and shouldn’t mislead the investors
- The security products sold should have the needs of the investors as the foremost criterion
The absolute disclosure of the investment product has to be made much before its purchase FINRA aims at safeguarding the investors’ needs by:
- Effectively monitoring the brokerage firms
- Keeping a close watch on the US equity market
- Quick detection of frauds
- Usage of tools to keep the investors informed about the market
Cost of FINRA Non-Compliance
FINRA has multiple challenges and one among them is the issue of social media adoption in enterprises. Social media promotes a higher level of frequency and the enterprises are still not ready for this shift in the work cultures. Social media, even though useful, has the potential to disrupt the data of the enterprise through breach scenarios. The other challenge is to contain the risks associated with the leaking of sensitive information through these somewhat data-lethal social media practices. There are chances that the data gets leaked through improper practices followed by the people when managing their social media profiles. Very often people tend to share things that are confidentially resulting in data breaches. This can result in the intellectual property of the company getting leaked; thus exposing the customer data. FINRA compliance is thus needed by financial institutions to deal with data security issues.
CASB Solutions for FINRA Compliance
Financial firms have to have FINRA compliance if they are to keep their business secure. With data being shared and collaborated with the cloud, these cloud services can sometimes be the propagators of compliance violations. The stored data in the cloud storage services makes up for most of the DLP violations taking place in the financial institutions. Thus, enterprises need a way of preventing data loss and maintaining visibility at the same time. They need complete control over the cloud services while achieving compliance standards in the regulatory policies. CASB solutions help enterprises to achieve all the above and report any instances of compliance violation. CloudCodes CASB Solutions help enterprises to customize their security needs and thus enhance their cloud security protocols. This, these solutions, in turn, make the process of achieving FINRA compliance much easier. By making effective use of efficient CASB solutions, FINRA compliance can be achieved and thus such need is met in quite a remarkable manner. CloudCodes is a leading player that has benchmarked the standard of quality when it comes to CASB solutions.
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