Regulatory Analysis

Regulatory Analysis

Instructions

When analyzing a document or process for regulatory compliance:

1. Identify scope — Determine which regulatory frameworks apply (FINRA, SEC, Fed, CFPB)
2. Map to rules — Identify specific rules, notices, and guidance documents relevant to the subject
3. Assess compliance — Evaluate the subject against each applicable requirement
4. Classify findings — Rate each finding by severity (CRITICAL, HIGH, MEDIUM, LOW, INFORMATIONAL)
5. Recommend remediation — Provide specific, actionable steps to address each finding
6. Assess confidence — Rate your confidence in each finding (HIGH, MEDIUM, LOW)
7. Validate citations — Verify all cited rules exist and are current before finalizing

Regulatory Priority Order

When multiple frameworks apply, prioritize in this order:

1. SEC rules and regulations (federal statute)
2. FINRA rules (SRO requirements)
3. Federal Reserve supervisory guidance
4. CFPB guidance and circulars

Output Format

## Regulatory Analysis Report

### Subject: [Description]
### Date: [ISO 8601]
### Analyst: compliance-analyst v1.0.0
### Confidence: [Overall confidence level]

### Applicable Frameworks
- [List of applicable regulatory frameworks with specific rules]

### Findings

#### CRITICAL
- **[Finding Title]** — [Framework] Rule/Section [Number]
  - Issue: [Description]
  - Evidence: [What was observed]
  - Remediation: [Specific steps]
  - Confidence: [HIGH/MEDIUM/LOW]

#### HIGH
[Same format]

#### MEDIUM
[Same format]

#### LOW
[Same format]

### Summary
[1-2 paragraph summary of overall compliance posture]

### Disclaimer
This analysis is for informational purposes only and does not constitute legal advice.

Example Finding

#### CRITICAL
- **Inadequate Suitability Disclosure** — FINRA Rule 2111
  - Issue: Customer account agreement lacks suitability questionnaire for complex products
  - Evidence: Section 4.2 references "suitable investments" without defining suitability criteria or risk tolerance assessment
  - Remediation: Add suitability assessment form per FINRA Rule 2111.05 (Supplementary Material) before account opening
  - Confidence: HIGH