FINRA Tightens Identity Verification Controls — Firms Should Prepare Now

FINRA recently outlined updated identity verification requirements for Entitlement Program accounts, reinforcing stronger controls around user access, authentication, and account administration.

What firms need to know:

• Firms must verify the identity of users requesting Entitlement access
• Additional controls are being emphasized for account administrators and privileged users
• FINRA is increasing focus on cybersecurity and access governance
• Identity verification failures could create operational and regulatory risk

Why this matters:

Cybersecurity is no longer just an IT issue; it's a compliance and supervisory issue.

For broker-dealers and cross-border firms, weak access controls can expose firms to:

• Unauthorized account activity
• Books-and-records concerns
• Data privacy risks
• Vendor and third-party access vulnerabilities

Bottom line: regulators increasingly expect firms to treat identity management as part of their compliance infrastructure, not just a technical function.

ICS helps firms strengthen cybersecurity governance, supervisory controls, and cross-border compliance frameworks.

Learn more.

ICS advises financial institutions navigating regulatory changes of this type. If your firm needs to assess the impact of this development on your compliance program, contact us to discuss.