FINRA is the industry equivalent of a firm’s Chief Compliance Officer. They’re supposed to identify and correct issues at the expense of the industry rather tha

FINRA is the industry equivalent of a firm’s Chief Compliance Officer. They’re supposed to identify and correct issues at the expense of the industry rather than wasting the government’s limited resources. FINRA conducts regular exams of all members the way a Compliance Officer will regularly examine all department functions. Whereas the SEC conducts random periodic exams (like an auditor), targeted exams (like an investigator) and occasionally “sweep” exams relating to the topic du jour (usually in preparing to issue to a new rule).