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Compliance Lock™️
Protect your firm from signature fraud and avoid costly audit penalties.
Audit-Ready Signature Data
Broker-dealers and financial advisors rely on digital efficiency to grow their businesses. Unfortunately, this new era of growth comes with new threats, including fraudulent signatures within digital workflows. Your next FINRA audit is coming whether you're ready or not. If your digital signature data isn't in order, you could face costly remediation and, even worse, a loss of trust in your vital client relationships.
Compliance Lock™️ from SIGNiX helps your compliance department efficiently monitor your firm's digital signatures and ensure their authenticity, thereby helping your firm meet the requirements of FINRA Rule 3110.
Compliance Lock leverages the comprehensive SIGNiX TotalAudit™️ audit trail and creates an easy-to-consume, periodic report that lists each transaction with red flags based on signer, submitter, and advisor attributes.
Advantages of Compliance Lock for Wealth Management Firms
Proactive Risk Management
Firms can stay ahead of potential perils associated with forgery, and effectively mitigate emerging threats.
Consistent Regulatory Compliance
Broker-dealers and RIAs can avoid fines associated with a lack of addressing digital signature discrepancies.
Trust and Reputation
Adopting Compliance Lock sends a message to your clients that your firm is committed to protecting their data.
FINRA Regulatory Notice 22-18
In August 2022, FINRA, the Financial Industry Regulatory Authority, issued a response addressing reports of registered representatives and associated persons engaging in the forgery or falsification of e-signatures.
Various individuals, including customers, colleagues, and supervisors, brought forward instances of deceptive practices involving account transfers, securities transactions, disclosures, undue pressure on administrative staff, and insufficient authentication measures.
During the investigation, several red flags emerged that raised concerns about the authenticity of the transactions. These indicators included discrepancies in customer email addresses, inconsistencies in the location data of users, and instances where customer IP addresses matched those of the representative involved.
As a result of these reports and investigations, FINRA took appropriate action to address the issue and reinforce the importance of adhering to ethical standards and regulatory guidelines within the financial industry. It is essential for financial institutions and professionals to maintain integrity and ensure the protection of customer assets and information.
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“FINRA’s recent Notice places a great compliance burden on broker-dealers and requires both an investment in technology and a tremendous amount of manual activity to identify and then investigate potential issues. SIGNiX’s automated solution slashes the commitment otherwise required in both human and financial resources.”
- Jay Jumper, CEO
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Broker-Dealer Responsibilities
As a broker-dealer, it is essential to uphold the highest standards of integrity and compliance. One of the primary responsibilities is to ensure that associated persons do not engage in forgery or falsification, as this constitutes a violation of FINRA Rules 2010 (Standards of Trade) and 4511 (Books & Records).
Under Rule 3110(a), broker-dealers have a duty to diligently supervise the activities of their associated persons. This includes being vigilant in identifying any red flags that may indicate potential fraudulent or deceptive practices. If any suspicious activities are detected, it is crucial for the firm to respond promptly and take appropriate actions to address the situation.
Additionally, Notice 09-64 emphasizes the importance of staying current with technological advancements. Broker-dealers must continually update and improve their supervisory systems and procedures to effectively adapt to changes in technology. This proactive approach helps mitigate the risk of electronic signature forgery and enhances the overall security measures in place.
By fulfilling these responsibilities, broker-dealers can foster a culture of compliance, protect their clients' interests, and maintain the trust and confidence of the financial markets.
SIGNiX Unveils Revolutionary Compliance Service for the Wealth Management Industry
In response to FINRA's Regulatory Notice 22-18, SIGNiX has added an innovative solution for detecting, tracking, and responding to potentially suspicious activities.
FINRA Issues Notice 22-18 on Digital Signature Fraud
There have been an increased number of allegations reported to FINRA about registered reps forging and falsifying signatures of clients as well as some colleagues and supervisors.