WASHINGTON -- If you're not happy with how FINRA functions, CEO Robert Cook wants to hear from you.
Cook is engaged in a "comprehensive, organization-wide top-to-bottom review" of FINRA's programs and operations. And because Cook is encouraging an aggressive approach, his efforts could result in major changes for the heavily regulated wealth management business.
"Everything must be on the table," Cook told attendees at FINRA's annual conference. "We have to avoid incrementalism or convenient compromises when bold action is required. This may not always be comfortable. While our changes must have a clear purpose and be workable in implementation, we cannot shy away from ambitious initiatives that will help us better achieve our mission."
After taking over as head of the regulator in August, Cook began what he calls a "listening tour" to meet with broker-dealers and other stakeholders, and has since launched FINRA360, a formal, multi-year review initiative to reassess FINRA's regulatory operations, its use of data and technology, and the metrics the regulator uses to evaluate its success.
In response to feedback from the industry, the regulator is currently evaluating whether to combine the distinct enforcement units in its member regulation and market regulation groups.
And as part of its broader review, FINRA is exploring new ways to better communicate with broker-dealer firms in a bid to facilitate compliance. In the enforcement component of that program, Cook said FINRA is committing "to take a fresh look at what we do today and to provide greater transparency and guidance."
Regulators have revealed what kind of issues advisors must address if faced with a review.
This week, FINRA announced its
Taken together with the regulatory guidance that FINRA publishes, the FINRA360 initiative is aimed at "finding better ways to help firms comply with the rules," with a particular focus on smaller brokerage shops.
"There are clearly concerns that many small firms have about compliance," Cook said. "We have to look at what is it about our rules that may impede small business."
TOO MANY REGULATIONS?
Cook is also pledging to ramp up FINRA's retrospective rule review, where the regulator combs through its rule book to reassess whether an existing regulation needs to be updated or scaled back.
Just this week, FINRA began re-evaluating its rules governing outside business activities and private securities transactions.
CEO Ron Kruszewski received praise for leading the firm's wealth management unit to a record for revenue, despite costly legal setbacks.
As Vice President, Underwriting Research and Development, Jackie Waas is involved in investigating and developing underwriting innovations, with an emphasis on concept development, research, presenting new ideas, and participating in concept validation activities.
She started her career with RGA in 2018 as Director of Underwriting Services, where she supported direct-to-consumer accelerated offerings, including assisting with the auditing of the e-underwriting program and helping develop digital health scores while supporting the Digital Health Data team.
Prior to joining RGA, Jackie was an Underwriting Business Consultant and automated underwriting systems subject matter expert with Legal & General America for four years after working in an underwriting capacity with the company for nine years. She also had five years of underwriting experience with AXA Equitable and formerly worked as a marketing manager for Steele Rubber Products.
Jackie received a Bachelor of Arts with a major in communications and a minor in psychology from Lenoir-Rhyne University in North Carolina. She is a Certified Fellow of the Academy of Life Underwriting, a Fellow of the Life Management Institute, and a Fellow of the Financial Services Institute. She is also an Associate, Reinsurance Administration; Associate, Insurance Agency Administration; and an Associate, Insurance Regulatory Compliance. Jackie also holds the Professional, Customer Service Institute designation, and she is a member of the Association of Home Office Underwriters.
Guizhou Hu is Vice President, VP, Head of Risk Analytics at RGA, where he supports global RGA underwriting initiatives and produces internal and external thought leadership pieces based on RGA's in-depth risk analytics. Before joining RGA in 2018, Guizhou served as Vice President, Chief Decision Analytics, for Gen Re and as a Senior Vice President for BioSignia Inc. Guizhou holds a medical degree from Beijing Medical University and a Ph.D. in Philosophy from Cornell University.
"Regular rule reviews can help us understand whether those rules can be made more effective and less burdensome, and also identify gaps in areas where investor protections can be strengthened," Cook said.
Separately, Cook also set as a key priority scrutiny of high-risk brokers and efforts to remove bad actors from the industry, an area where FINRA is "devoting considerable resources."
Last week,
"We share a common goal in this area," Cook said. "And I call on all of you to continue to work constructively with us to put in place whatever measures are required to ensure that investors can have confidence in their investment professionals and that bad actors are removed from the industry."
