Zero Deficiencies: Closing the Gap

July 1, 2012

Broker-dealers face constant regulatory risks that continue to increase. These risks have short-term and long-term ramifications. In the short term, failure to follow a regulatory requirement may result in a fine, censure, or other disciplinary action by regulators such as the SEC, FINRA, the states, or the MSRB. Longer term, multiple regulatory violations can tarnish a broker-dealer’s reputation and, in many instances, result in increased regulatory scrutiny of the firm’s activities.