What triggers a compliance review?

A compliance review is typically triggered by several factors. Regulatory requirements often dictate that firms conduct regular assessments to ensure adherence to legal standards. Additionally, anomalies in trading patterns, such as sudden spikes in trading volume or unusual transactions, can prompt further investigation. Other triggers may include customer complaints, alerts from transaction monitoring systems, or updates in regulatory guidelines. These reviews aim to maintain market integrity and protect against fraudulent activities, upholding the standards set forth by financial authorities.