Overview The Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 24-02 (“Notice”) to announce the adoption of FINRA Rules 3110.18 and 3110.19 (“Rules”), which provides guidance on the supervision of … Continue reading FINRA Issues Guidance Regarding Residential Supervisory Locations
The Financial Industry Regulatory Authority’s (‘FINRA”) restructured qualification examination program will become effective on October 1, 2018, and it will then require that all new representative-level applicants be required to take a … Continue reading FINRA Restructures Qualification Examination Program
Financial Industry Regulatory Authority (FINRA) Regulatory Notice 17-30 noted that the Securities and Exchange Commission (SEC) had approved new registration and qualification rules for FINRA, including that members are required … Continue reading FINRA Requires Principal Financial Officer and Principal Operations Officer
The Securities Investor Protection Corporation (SIPC) and the Financial Industry Regulatory Authority (FINRA) recently announced a joint services agreement that was designed by the agencies to ease the reporting burdens and … Continue reading SIPC / FINRA Streamline Broker/Dealer Reporting Process
The Financial Industry Regulatory Authority (FINRA) has adopted a new electronic Form 211 for purposes of compliance with FINRA Rule 6432 (Compliance with the Information Requirements of SEA Rule 15c2-11). … Continue reading FINRA’s Adopts Electronic Form 211 for FINRA Rule 6432 Compliance
The Public Company Accounting Oversight Board (PCAOB) has adopted new rules and amendments to auditing standards (collectively, the “proposed rules”) to make the auditor’s report more informative and relevant to … Continue reading PCAOB Adopts New Rules for Audit Reports
In an attempt to collect more information on private placement activity, the Financial Industry Regulatory Authority (“FINRA”) has updated the private placement filer form that member firms must use to … Continue reading FINRA Updates Private Placement Filer Form
The Financial Industry Regulatory Authority’s (FINRA) review of securities offering documents has revealed a large number of instances in which broker-dealers have not complied with requirements of Rules 10b-9 and … Continue reading FINRA Gives Additional Guidance on Contingency Offerings
FINRA has released an updated Written Supervisory Procedures Checklist to reflect new FINRA rules. The Written Supervisory Procedures Checklist (“WSP Checklist”) is an outline of selected key topics representative of … Continue reading FINRA Releases New Written Supervisory Procedures Checklist
The SEC approved the adoption of FINRA Rule 2272 (Sales and Offers of Sales of Securities on Military Installations) to govern sales and offers of sales of securities by firms … Continue reading SEC Approves FINRA Rule 2272 – Governing Sales of Securities on Military Installations
FINRA believes that effective liquidity management is a critical control function at broker-dealers and across firms in the financial sector. Failure to manage liquidity has contributed to both individual firm … Continue reading FINRA Issues Liquidity Risk Management Guidance
The Financial Industry Regulatory Authority (FINRA) a has censured and fined Charles Schwab & Co., Inc. $2 million for net capital deficiencies and for related supervisory failures. The net capital … Continue reading Net Capital Deficiency Costs Charles Schwab Millions
FINRA has announced that later this year, it will transition the subordinated loan submission process to an electronic platform, via the Firm Gateway. The online system will simplify the submission … Continue reading FINRA Announces New Electronic Subordinated Loans System
In Regulatory Notice 15-25, FINRA released updates to interpretations in the Interpretations of Financial and Operational Rules that have been communicated to FINRA by the staff of the SEC’s Division of … Continue reading FINRA Updates the Interpretations of Financial & Operational Rules
FINRA Rule 3110(e) (Responsibility of Member to Investigate Applicants for Registration) is effective as of July 1, 2015. The new rule requires, prior to registration, that broker-dealers conduct an investigation … Continue reading Background Investigations Now Required by FINRA
In a major shift in policy with respect to the processing of customer checks by broker-dealers in subscription-way securities, the United States Securities and Exchange Commission (“SEC”) issued a No … Continue reading No-Action Guidance on Prompt Forwarding of Customer Funds with Subscription-Way Securities
FINRA Notice to Member 15-07 noted that the amendments to FINRA Rule 8311 will be effective August 24, 2015. In general, while the amendments to FINRA Rule 8311 eliminate duplicative … Continue reading Amendment to FINRA Rule 8311 Approved
The Financial Crimes Enforcement Network (FinCEN) is proposing new rules under the Bank Secrecy Act (BSA) to clarify and strengthen customer due diligence (CDD) requirements for banks, broker-dealers, mutual funds, … Continue reading New Proposed AML Customer Due Diligence Requirements
Overview The Foreign Account Tax Compliance Act (“FATCA”) has resulted in significant changes in the reporting and withholding requirements of financial institutions, including broker-dealers and investment advisers that represent foreign … Continue reading Treasury Regulations Implemented to Address FATCA Impact Broker-Dealers and Investment Advisers
Overview In late February, the Financial Industry Regulatory Authority (“FINRA”) released Regulatory Release 14-09, and requested public comment on the proposed rules (the “LCFB Rule Set”) for a new category … Continue reading FINRA Announces Proposed Rules for Limited Corporate Financing Broker Category
Based upon the wide spread devastation caused by Hurricane Sandy, and the numerous other natural disasters such as tornadoes, flooding and wildfires that have occurred in the last few years, … Continue reading New Regulatory Guidance Challenges: Business Continuity Planning for the Financial Industry
Implementation On July 31, 2013, the Securities and Exchange Commission (SEC) announced amendments to Financial Responsibility Rules for Broker-Dealers (Release No. 34-70072; File No. S7-08-07). The amendments impact the net … Continue reading Amendments to Financial Responsibility Rules for Broker-Dealers Impact Net Capital Rules
The rules governing communications with the public have undergone significant changes with the approval of FINRA Rule 2210 (“Rule”) by the Securities and Exchange Commission (“SEC”). The Rule was submitted … Continue reading FINRA Rules Governing Communications With the Public Undergo Major Reorganization
Reporting Obligations For FINRA Member Firms Increase Due to FINRA Rule 4524 FINRA Rule 4524 Despite concerns of membership, the Financial Industry Regulatory Authority (FINRA) has laid down yet another mine field … Continue reading FINRA Rule 4524 Increases Reporting Obligations For Member Firms
Annual Audited Financial Report Submission The Financial Industry Regulatory Authority (FINRA) announced in Regulatory Notice 11-46 that commencing November 8, 2011, member firms having a fiscal year end on or … Continue reading Update on FINRA Financial Rules
The Financial Industry Regulatory Authority (FINRA) recently issued a Frequently Asked Questions (FAQ) release on the qualifications necessary to engage in investment banking activities, and it is apparent that membership … Continue reading Investment Banking Qualifications Re-Clarified by FINRA
After substantial debate and comments between FINRA and its membership, FINRA recently issued Notice to Members 11-33 and notified membership that covered persons will have to qualify and register as … Continue reading FINRA Implements the Operations Professional Designation
The SEC has recently issued a No-Action Letter that extends the ability for a broker-dealer to treat an investment adviser as if it were subject to an Anti-Money Laundering Program (AML … Continue reading SEC Extends Broker-Dealer Reliance on CIPs of Investment Advisers
Most of the posted FINRA policy related to the granting of extensions for the filing of annual financial audits contains nothing surprising; however, it is clear that FINRA has had … Continue reading FINRA Posts Policy for Annual Financial Audit Extension Requests
New FINRA Rule 3270 (the Rule) will replace NASD Rule 3030, effective December 15, 2010. This change will have a significant impact on the compliance efforts related to outside business activities … Continue reading FINRA Issues New Outside Business Activity Rule
As a result of amendments to the Commodity Exchange Act (“CEA”), the Commodity Futures Trading Commission (“CFTC”) has issued final, foreign exchange (forex) rules which become effective on October 18, … Continue reading Retail Off-Exchange FOREX Registration Deadline Immanent
The Financial Industry Regulatory Authority (FINRA) has recently noted significant market abuses in the sale of private placements by member firms. These abuses include fraud and sales practices directly related to … Continue reading Private Placement Due Diligence and FINRA Anti-Fraud Enforcement
FINRA Rule 3270 Provides Guidance On Outside Business Activities of Associated Persons As part of the process of developing a new consolidated rulebook, FINRA proposed to adopt NASD Rule 3030 … Continue reading FINRA Rule 3270 Provides Guidance On Outside Business Activities
FINRA Renews Focus on Intercompany Expense Sharing Agreements In October 2003, FINRA issued NASD Notice to Members 03-63 (the Notice to Members) in which the SEC issued guidance on the … Continue reading FINRA Renews Focus on Intercompany Expense Sharing Agreements
Time Runs Out On the Public Company Accounting Oversight Board DeadlineThe Public Company Accounting Oversight Board (“PCAOB”) was established by the Sarbanes-Oxley Act, of 2002 (the “Act”). The purpose of … Continue reading Time Runs Out On PCOB Deadline
FINRA Comment Letter – Rule 2040 – Payments to Non-Registered Persons On December 2,2009, the Financial Industry Regulatory Authority (FINRA) published Regulatory Notice 09-69 (Regulatory Notice) seeking comments on its proposal … Continue reading FINRA Comment Letter – Rule 2040 – Payments to Non-Registered Persons