FINRA Extends Deadline for 2015 Risk Control Assessment

FINRA has extended the deadline to complete the 2015 Risk Control Assessment Survey(RCA) to July 31, 2015. The RCA is a survey that FINRA uses to better understand the business activities in which individual member firms engage, the products and services they sell, the kinds of clients and counterparties with which they deal, and to further understand risks associated with those business models. In addition, the RCA helps FINRA identify and assess the integrity of the controls intended to manage those attendant risk exposures.

While voluntary, FINRA believes that the RCA is an important component of its risk-based examination program, in that it improves their understanding of firms’ businesses and scope of operations.  Theoretically the information can be used as a tool by examiners in the development  of risk-focused examination plans and limit reviews to key areas of potential concern, which can limit time spent onsite at each firm during an examination.