Link to The Report highlights FINRA’s continued focus on generative artificial intelligence, cybersecurity, small-cap securities fraud, and third-party risk The Report highlights FINRA’s continued focus on generative artificial intelligence, cybersecurity, small-cap securities fraud, and third-party risk
The Financial Industry Regulatory Authority, Inc. (“FINRA”) published its 2026 FINRA Annual Regulatory Oversight Report (the “Report”), which builds on the structure and content of FINRA’s prior reports for 2021-2025. This year, the Report was published earlier than in prior years—aligning more closely with the Securities and Exchange Commission’s release of its 2026 examination priorities. The Report adds a new section on continuing and emerging trends in generative artificial intelligence. It also includes new content on various topics, including cybersecurity and cyber-enabled fraud, manipulative trading in small-cap, exchange-listed equities, and the third-party risk landscape. In addition, the Report highlights new findings and effective practices relating to topics previously covered by FINRA. FINRA also uses the Report to highlight its FINRA Forward initiatives, which have as their objectives modernizing FINRA rules; empowering member firm compliance by enhancing FINRA’s support for member firm compliance programs; and combatting risks related to cybersecurity and fraud by expanding FINRA’s cybersecurity and fraud prevention activities.
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