FINRA’s 2025 Annual Regulatory Oversight Report: Focus on AI, Other Emerging Risk Areas, and Best Practices

On January 28, 2025, FINRA published its Annual Regulatory Oversight Report (the Report). The Report highlights emerging risk areas and recent developments, common compliance deficiencies, and best practices for member firms. The Report is important not only because it identifies areas where FINRA is likely to be focused over the coming months but also because it provides insight into FINRA’s expectations for the types of controls, procedures, and supervisory frameworks that firms should have in place to address priority risk areas and activities.