2025 FINRA Conference: Key Trends & Compliance Updates

Introduction

The FINRA Annual Conference is just around the corner, taking place from May 13 to May 15, 2025. This event is very important in that it’s a key opportunity for financial professionals, industry peers, and regulators to come together and discuss the latest developments shaping the regulatory landscape. With a packed agenda covering compliance and risk management topics, the conference plays a vital role in helping firms navigate evolving regulations.

This year, financial firms should pay even closer attention. That’s because, earlier in 2025, FINRA released its Regulatory Oversight Report, highlighting critical updates that firms must address to stay ahead of emerging risks. The conference will provide valuable insights into these regulatory changes, offering attendees the chance to engage directly with FINRA representatives and industry experts to ensure they remain compliant.

Beyond compliance updates, the event will also explore key topics such as risk management, crypto asset regulations, financial crime trends, and the evolution of branch office inspections. In this blog, we’ll break down the top trends and insights to watch for, how to prepare for upcoming compliance changes, and why attending this conference is essential for staying ahead in the financial industry.

Top Topics & Trends to Watch For

As financial firms prepare for the 2025 FINRA Annual Conference, the three key topics that stand out are:

Emerging Cybersecurity Risks and Regulatory Expectations

As cyber threats become more complex, financial firms face more risks from data breaches, ransomware attacks, and account takeovers. A failure to secure sensitive information can then lead to financial losses, reputational damage, and regulatory violations. Key concerns include:

• Ransomware Attacks – Cybercriminals gain unauthorized access to firm systems, encrypt sensitive data, and demand ransom payments.
  
  
• Account Takeovers – Hackers use stolen credentials to access client accounts, leading to unauthorized transactions and financial fraud.
  
  
• Insider Threats – Employees, whether intentionally or inadvertently, may misuse their access to firm data, compromising security.
  
  
• Third-Party Vendor Risks – Weaknesses in vendor security can introduce vulnerabilities that expose firms to data breaches and supply chain attacks

With cyber incidents on the rise, firms must enhance security protocols, implement monitoring systems, and ensure compliance with evolving regulatory requirements.

Updates on SEC and FINRA Compliance Regulations

Regulatory oversight continues to evolve, so firms need to stay informed on new compliance obligations and best practices. Both FINRA and the SEC are introducing key updates that will impact financial institutions too, including:

• FINRA Updates:
   
  • Enhanced Cybersecurity and Data Protection Requirements – Stricter guidelines for safeguarding sensitive data and responding to cyber threats.
    
    
  • Stricter Record-Keeping and Reporting Obligations – Expanded requirements for maintaining and disclosing firm records.
    
    
  • Increased Oversight of Third-Party Vendors – Heightened scrutiny of vendor relationships to mitigate security risks.
    
    
  • Updated Best Practices for Customer Data Privacy – New standards for managing and protecting client information.
    
    
• SEC Updates:

• • Formation of a New Crypto Task Force – Increased focus on regulating digital assets and addressing crypto-related risks.

• • Updated Guidance on Shareholder Proposals & Exempt Solicitations – Clarifications on filing requirements and disclosure obligations.

• • Defense of Climate-Related Disclosure Rules – A reconsideration of proposed regulations affecting ESG reporting.

• • Launch of Cyber and Emerging Technologies Unit – A dedicated team focused on enforcing cybersecurity regulations and mitigating AI-related risks.

With these changes, firms must review their compliance programs to ensure their policies align with new expectations.

The Role of AI and Automation in Financial Compliance

Artificial intelligence is transforming the finance industry, but it also introduces new risks. Bad actors are increasingly using generative AI (GenAI) to conduct fraud, impersonate executives, and manipulate financial markets. Key risks and regulatory considerations include:

• AI-Powered Fraud – Cybercriminals are leveraging AI to create synthetic identities, deepfake videos, and phishing schemes that deceive clients and employees.
  
  
• Regulatory Oversight of AI Use – Firms must ensure AI-generated content and chatbot communications comply with FINRA’s record-keeping and supervision rules.
  
  
• Market Manipulation Concerns – AI-generated misinformation can spread across social media, artificially inflating or deflating stock prices.

Because of this, FINRA advises firms to educate employees and clients on AI-related risks, implement monitoring tools, and establish AI governance.

Preparing for Compliance Changes

Additionally, with the regulatory requirements evolving, financial firms must be proactive in order to remain in good standing with FINRA, while also protecting client data and financial assets.

To stay ahead of new regulatory requirements, firms should:

• Conduct a Compliance Gap Analysis by:
  
  
  • Regularly assessing current compliance programs to identify gaps and vulnerabilities.
    
    
  • Reviewing recent regulatory changes and ensure internal policies align with new requirements.
    
    
  • Working with legal and compliance teams to update procedures and address potential risks.
    
    
• Strengthen IT Security and Implement Data Encryption through:
  
  
  • Deploying advanced cybersecurity measures, including firewalls, multi-factor authentication, and endpoint detection tools.

• • Encrypting sensitive client and financial data to prevent unauthorized access.

• • Ensuring compliance with SEC Regulation S-P and FINRA Rule 4370 by implementing secure data protection practices.

• Improve Record-Keeping and Audit Trails by:

• • Maintaining detailed documentation of all transactions, communications, and regulatory filings.

• • Implementing automated systems for tracking and archiving records to meet FINRA standards.

• • Conducting regular internal audits to ensure data integrity and compliance with evolving regulations.

• Train Employees on the Latest Regulatory Requirements through:

• • Providing ongoing compliance training to employees on FINRA rule updates.

• • Educating staff on cybersecurity best practices, AI-related risks, and data protection protocols.

• • Establishing clear guidelines for handling sensitive client information and responding to potential security incidents.

The regulatory landscape will continue to shift however. One of the most effective strategies is partnering with a Managed Service Provider (MSP) to ensure continuous compliance and security. Benefits include:

• Real-Time Monitoring & Threat Detection – MSPs provide 24/7 monitoring to detect and respond to cyber threats before they escalate.
  
  
• Regulatory Compliance Expertise – MSPs stay updated on FINRA requirements, helping firms implement the necessary controls and best practices.
  
  
• Data Backup & Disaster Recovery – Ensure compliance with FINRA Rule 4370 by securing client data with automated backups and rapid recovery solutions.
  
  
• Audit & Reporting Support – MSPs assist in generating compliance reports, maintaining detailed audit trails, and preparing for regulatory examinations.

By leveraging MSP support, financial firms can navigate regulatory changes with confidence while protecting their clients.

Why Attending the Conference Matters

The FINRA Annual Conference is more than just an opportunity to stay informed on regulatory updates though. It’s also a chance for financial firms to:

• Network with Industry Experts

The conference brings together top financial professionals, compliance officers, and regulators, providing a unique space to build valuable relationships. Engaging with industry experts can open doors to new partnerships, offer fresh perspectives on compliance, and create opportunities for knowledge sharing that can help firms.

• Access Valuable Insights from Compliance Leaders

Attendees will hear firsthand from FINRA officials about upcoming regulations, enforcement trends, and best practices for maintaining compliance. These insights help firms better understand expectations, adapt their policies, and gain clarity on complex compliance issues that impact their day to day.

• Use Conference Takeaways to Strengthen Their Compliance Strategies

The knowledge gained from panel discussions, workshops, and case studies can be directly applied to improving a firm’s compliance program. Whether it’s refining cybersecurity protocols, enhancing record-keeping practices, or preparing for regulatory changes, firms can leverage key takeaways to address their compliance challenges and risk management strategies.

Conclusion

Staying informed on the latest FINRA developments is essential for financial firms to maintain compliance and continue operating successfully in the industry. With evolving regulations, emerging risks, and increasing oversight, firms that stay ahead of these changes will be better positioned to protect their business and clients. The FINRA Annual Conference provides insights and resources that can help firms navigate these changes effectively.

To ensure ongoing compliance, financial firms should actively engage with compliance experts like Charles IT for guidance and support. Schedule a call today to discuss your compliance strategy and how to stay ahead of regulatory changes.

Additionally, before the conference, take advantage of our FINRA Growth & Compliance Assessment to evaluate where your firm currently stands. This assessment will help you identify key areas for improvement so you can maximize the value of the conference and focus on what matters most. Register now to get started!