News

A number of broker dealers have not adequately scaled their anti-money laundering programs to match the growth of their businesses, U.S. securities regulators said this month. In its first-ever public disclosure of industry-wide examination findings, the Financial Industry Regulatory Authority, or FINRA, cited rapid growth of broker dealers’ business arms as one of the factors that can render the firms vulnerable to financial crime if their compliance functions are not properly resourced. The regulator also said some firms were failing to account for the risk of new or rising financial products that form part of that growth, such as microcap...