The “What to Expect” Webcast Series
Preparing for a FINRA Cycle Examination 5
To address document requests that may come up as the examination is conducted, FINRA staff will
ask you for your preferred process for these requests while on site. The examiners will inform you of
the anticipated length of the onsite exam and may request additional documentation or records
that were not previously requested. FINRA staff may also ask for a tour of your offices. Finally, during
this meeting, the examiners will usually review with you the process for closing out the exam.
Next, you should review logistics with the examiners—such as the location in your offices where
the examiners will work, and if there is restricted access to the building or floor, or time constraints
on getting into or out of your offices. Since examiners often need to keep copies of some records,
please make a copying facility available for them to use. And, if you can provide someone to assist
with copying, that will help speed up the exam.
During the initial meeting, be sure to ask your examiners any questions you may have about
the process.
Cooperation and communication is key to a successful exam. So, please work with the examiners.
If they find possible exceptions or potential violations, determine whether the firm can remediate
the situation during the onsite exam.
It is important to note that while preliminary findings may be identified on site, examiners
generally do not conclude during the onsite inspection whether violations have occurred. Rather,
the onsite examination is focused on analyzing relevant information and obtaining any additional
information deemed necessary, as well as making preliminary observations about compliance or if
it is lacking.
Once the onsite review is complete, the examiner will conduct an Exit Meeting with key principals of
your firm to review preliminary findings and any potential violations. An Exit Meeting Report will be
prepared and provided to you. It describes the potential problems, open items, recommendations and
other observations. The goal of the Exit Meeting is to quickly alert your firm to possible weaknesses
so that you can gain immediate benefits from the onsite inspection and determine if corrective
action is warranted. Your firm will be asked to sign the Exit Meeting Report to indicate receipt.
Onsite Exam Tips
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Make a workspace available for the examiner.
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Make sure the examiner has access to a copier or copying facilities—and, if possible,
assistance.
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Coordinate schedules of principals, supervisors and managers who may need to be
interviewed.