Guggenheim Partners Investment Management LLC agreed to pay a $20 million penalty to settle charges brought by the Securities and Exchange Commission (SEC) that it breached its fiduciary duty by … Continue reading Guggenheim Partners Sanctioned for Failure to Disclose Conflict to Clients
The Securities and Exchange Commission has finally adopted the final rule t requiring public companies to disclose the ratio of the compensation of its chief executive officer (CEO) to the median … Continue reading SEC Adopts Rule for Pay Ratio Disclosure
On August 6, 2015, the Securities and Exchange Commission (SEC) issued a No Action Letter to Citizen VC, Inc. (CVC) that appears to have further loosened the prior No Action … Continue reading Substantive Pre-Existing Relationships Possible in On-Line Private Placements
FINRA issued Regulatory Notice 15-27 to remind firms engaging in municipal securities transactions that their written supervisory procedures should identify the process for detecting, resolving and preventing the consequences of firm short positions … Continue reading FINRA Issues Guidance Relating to Firm Short Positions & Fails-to-Receive in Municipal Securities
The SEC has approved amendments to FINRA Rule 1250 (Continuing Education Requirements) to provide for a Web-based delivery method for completing the Regulatory Element of the Continuing Education (CE) requirements. The CE requirements … Continue reading Online Delivery of the FINRA Regulatory Element of Continuing Education Approved
The Securities and Exchange Commission (“SEC”) adopted Rule 206(4)-5 (“Pay to Play Rule”) under the Investment Advisers Act of 1940 in 2010. The Pay to Play Rule prohibited investment advisers … Continue reading Pay to Play Ban on Third-Party Solicitation Now Effective
The Securities and Exchange Commission (“SEC”), has approved the adoption of new FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) to address conflicts of interest relating to the publication and … Continue reading SEC Approves New FINRA Debt Research Analysts & Report Rules
The Financial Industry Regulatory Authority, Inc. (“FINRA”) has filed a proposed rule change to amend FINRA Rule 2210 (Communications with the Public) with the Securities and Exchange Commission (“SEC”). The proposed … Continue reading FINRA Proposes Change to Rule 2210 (Communications with the Public)
FINRA has extended the deadline to complete the 2015 Risk Control Assessment Survey(RCA) to July 31, 2015. The RCA is a survey that FINRA uses to better understand the business activities in … Continue reading FINRA Extends Deadline for 2015 Risk Control Assessment
The Securities and Exchange Commission (“SEC”) announced a whistleblower award of more than $3 million to a company insider whose information helped the SEC crack a complex fraud. The multi-million … Continue reading SEC Awards Whistleblower Over $3 Million Award
In her opening remarks at the 2015 National Compliance Outreach Program for Broker-Dealers SEC Chair Mary Jo White set the tone for the program, and addressed a number of issues. Most significant was her attempt … Continue reading SEC Chair Mary Jo White Sets the Tone at the Top
Oregon has joined California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Illinois, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, New Mexico, Rhode Island, Vermont, Virginia and Washington, D.C. in the “Ban the Box” … Continue reading The Impact of “Ban the Box” Legislation on FINRA Broker-Dealers
Senators Jack Reed (D-RI) and Chuck Grassley (R-IA) introduced bipartisan legislation in the Senate to give the Securities and Exchange Commission (SEC) another tool to crack down on violations of securities laws … Continue reading Bill Introduced to Significantly Increase SEC Penalties
The SEC Office of Compliance Inspections and Examinations (OCIE) recently issued a Risk Alert regarding the Targeted Industry Reviews and Examinations Initiative related to retirement accounts. The Risk Alert noted … Continue reading SEC Launches Retirement Targeted Exam Initiative
In April 2014, FINRA announced it would conduct a review of public records available for the entire population of approximately 630,000 active registered representatives (RRs) for financial disclosures that may … Continue reading CRD Public Records Validation Initiative
FINRA is requesting comments in Regulatory Notice 15-22 on a revised proposal to adopt the NASD and Incorporated NYSE rules regarding discretionary accounts and transactions as FINRA Rule 3260 (Discretionary … Continue reading FINRA Requests Comments on Revised Proposal Regarding Discretionary Accounts
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
The Code of Arbitration Procedure for Customer Disputes (Customer Code) and the Code of Arbitration Procedure for Industry Disputes (Industry Code) (together, codes) govern the payments that FINRA makes to … Continue reading SEC Approves Amendments to the Codes of Arbitration Procedure to Increase the Fees Assessed for Late Cancellation or Postponement of a Hearing
The SEC announced on July 1, 2015 that Deloitte & Touche LLP (Deloitte) was charged by the SEC with violating auditor independence rules when its consulting affiliate, Deloitte Consulting LLP, maintained a … Continue reading Deloitte & Touche Charged With Violating Auditor Independence Rules
Based upon a public statement issued by SEC Commissioner Michael S. Piwowar and Commissioner Kara M. Stein earlier this week, it appears that that the plan to move from a three-day … Continue reading T+2 Trade Settlement on Regulatory Horizon
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
The U.S. Department of the Treasury (“Treasury Department”) submitted its Semiannual Regulatory Agenda for review by The Office of Management and Budget (“OMB”) in April 2015. The semiannual regulatory agenda … Continue reading FinCEN Re-Proposes AML Rule for Investment Advisers
The last 18 months has found the financial industry in the spotlight for cybersecurity breaches, and as a result, the SEC and FINRA are ramping up their expectations regarding cybersecurity for … Continue reading Financial Industry Cybersecurity Standards Not Modeled After Government Agencies, Thankfully …
The Municipal Securities Rulemaking Board (MSRB) is requesting comment on a proposal to modify the application of the standard of independence for the one public member of its Board of Directors … Continue reading MSRB Requests Comments on Alternative Standard of Independence for Investor Representative on its Board
FINRA’s announced a new ad campaign that is meant to underscore the ease and importance of checking BrokerCheck before investing. In tangent with the print ad released, FINRA plans to … Continue reading FINRA Launches National Ad Campaign
SIFMA’s Economic Advisory Roundtable has issued its semiannual survey of concerning the U.S. economic outlook and rates forecasts. For a summary of the survey and access to the full survey, Click Here.
The SEC is asking for comments on how new and novel exchange-traded products should be listed, marketed and traded, as part of an effort to potentially write new rules for the … Continue reading SEC Requests Comments on Exchange-Traded Products
FINRA has requested comments in Regulatory Notice 15-20 on a concept proposal to restructure the current representative-level qualification examination program into a format whereby all potential representative-level registrants would take a … Continue reading FINRA Requests Comments Proposal to Restructure the Representative-Level Qualification Examination Program
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, through the The National Adjudicatory Council (NAC), first published the Sanction Guidelines in 1993. The goal of the Sanction Guidelines was twofold. First, it was intended to familiarize FINRA … Continue reading FINRA Enforcement Sanctions Increased
The LeGaye Law Firm wants to advise you that the Colorado Department of Regulatory Agencies has recently passed a new rules Rules 51-4.3(K) and 51-4.4(IA)(I), which requires all broker-dealer and … Continue reading Colorado – New Email Rules Effective June 1, 2015
It appears that the proposed fiduciary rule submitted by the Department of Labor to the Office of Management and Budget is being fast-tracked and may be released today. Megan Leonhardt … Continue reading DOL Fiduciary Rule To Be Released As Early As April 14, 2015
FINRA Notice to Members 15-07 noted that the effective date of Rule 0190 is August 24, 2015. Rule 0190 is based largely on NASD IM-2420-1(a) (Transactions Between Members and Non-Members; … Continue reading FINRA Rule 0190 Effective August 24, 2105
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
It appears that the Financial Industry Regulatory Authority (“FINRA“) intends to back away from their reliance on FINRA Rule 8210 (the “Rule”) information requests for routine matters. At the Ask FINRA … Continue reading FINRA Backing Away From Reliance on Rule 8210 for Routine Information Requests
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
In what appears to be a noteworthy departure from the Securities and Exchange Commission’s (“SEC”) long-held view that persons receiving transaction-based compensation in connection with facilitating the acquisition and or … Continue reading M&A Brokers Exempted From SEC Broker-Dealer Registration
2014 Renewal Calendar On November 11, 2013, FINRA posted the online Preliminary Renewal Statements on Web CRD and Web IARD, which commenced the 2014 renewal season for broker-dealers and investment … Continue reading Broker-Dealer & Investment Adviser Renewal Update for 2014
Historically, the enforcement actions brought by the Securities and Exchange Commission (“SEC”) have focused more on fraud and misrepresentation, than books and records violations and not on compliance professionals. It appears … Continue reading SEC Enforcement Agenda Looks to Minor Rule Violations
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
ERISA Section 408(b)(2) Fee Disclosures Are Due 6/30/2012 ERISA Section 408(b)(2) This is a reminder that all covered service providers to ERISA qualified plans (“ERISA Plan”) are required to deliver a fee … Continue reading ERISA Section 408(b)(2) Fee Disclosures Due 6/30/2012
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
Compliance Date for Delivery to Clients of the New Form ADV Part 2B Supplements Extended by SEC As a result of the efforts of the Securities Industry and Financial Markets … Continue reading Compliance Date for Form ADV Part 2B Extended by SEC
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
Department of Labor Imposes Significant Disclosure Obligations On Broker-Dealers and Investment Advisers The Department of Labor (“DOL”) recently issued interim final regulations under Section 408(b)(2) (the “Rule”) of … Continue reading DOL Imposes Disclosure Obligations
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 Securities and Exchange Commission’s (SEC) position on the payment of finder’s fees to non-registered broker-dealers has been further clarified in a request for a No-Action Letter, which was denied … Continue reading SEC Further Limts Use of Finders Fees
After years of speculation regarding when the proposed changes to the Form ADV Part II would be implemented, the Securities and Exchange Commission (SEC) unanimously adopted the proposed changes on … Continue reading Form ADV Amendments Approved by the SEC
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
Impact on FINRA Member Firms While new NASD Rule 1032(i) (the “Rule”) is currently recognized by FINRA, a number of states have not yet amended statutes and rules which incorporate … Continue reading State Law Conflicts with FINRA Investment Banking Registration
In response to the difficulties faced by the Securities and Exchange Commission (SEC) in 2009 related to the market crisis, the Ponzi schemes perpetrated by Bernard Madoff and Stanford Financial, … Continue reading SECs Expanded Enforcement Tool Box
As a result of the increased use of social media websites, such as blogs or social networking sites for business and personal communications, the Financial Industry Regulatory Authority (FINRA) issued … Continue reading Blogs, Social Media Networking Sites, and Supervision
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
January 2010 FINRA Rule Changes Related To Anti-Money Laundering and Business Continuity Plans With the New Year having arrived, it is important to note that FINRA has already commenced … Continue reading FINRA AML & BCP Rule Changes
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