FINRA Notice 21-29: The Broker-Dealer's Practical Guide to Third-Party Risk

FINRA's position on third-party risk is clear: you can outsource a function, but you can't outsource the responsibility for it. Regulatory Notice 21-29 sets out specific expectations for how broker-dealers identify, assess, and monitor third-party relationships — and examiners aren't just checking whether policies exist. They want evidence that your program is actually working.

This guide breaks down what Notice 21-29 requires across four regulatory focus areas and four stages of third-party oversight, with the specific questions FINRA suggests broker-dealers ask themselves at each step.

Download the guide to learn:

• The four regulatory areas FINRA expects broker-dealers to address 
• What FINRA scrutinizes at every stage of a third-party relationship 
• The risk-based principle that runs through all of Notice 21-29