Evolving
Examination
Program

In a recent podcast, Senior Management discussed how FINRA is looking to evolve its examination program to be more risk-informed, efficient, and transparent. Their enhancements are aimed at reducing the regulatory burden on member firms while strengthening market integrity and investor protection. By leveraging new technology and internal data, FINRA intends to shift away from traditional, broad oversight toward a more targeted approach that focuses resources on the areas of greatest potential risk to investors.

A key component of these changes is the streamlining of examinations for lower-risk firms, including the tiering of first-firm exams based on membership application data. For firms deemed both low-risk and low-impact, FINRA has extended the examination cycle from four to six years. Furthermore, the organization is moving away from broad, blanket data requests-such as default requests for a full year of transactional blotters-in favor of more targeted requests that utilize existing intelligence to pinpoint specific risk areas. This transition contributed to a 12% drop in external data requests in 2025.

FINRA is also increasing transparency by providing firms with advance notice of the quarter in which an exam will occur, allowing for better resource planning. Further, FINRA is implementing a more automated exam platform and exploring generative AI to standardize exam reports and ensure consistency. Additionally, firms now have the option to receive preliminary findings in writing earlier in the examination process, enabling them to take proactive corrective actions and provide additional context before the exam concludes.

Diles Consulting is uniquely positioned to help firms navigate these evolving regulatory expectations, led by Colleen Diles, who brings over 25 years of industry experience, including 22 years within FINRA's Member Supervision Department. Our company assists clients with support throughout the examination process, providing expert guidance and assistance in addressing any findings and creating actionable and responsive corrective action steps. By providing tailored compliance solutions and "audit-ready" reports, Diles Consulting helps firms manage the complexities of FINRA's new data-driven approach with clarity and confidence.

How FINRA Is Enhancing Member Firm Examinations | FINRA.org