Compliance Notice

Simplified Arbitration Approved by SEC

The Code of Arbitration Procedure for Customer Disputes (Customer Code) and the Code of Arbitration Procedure for Industry Disputes (Industry Code, and together with the Customer Code, the Codes) have provided two options for administering cases with claims involving $50,000 or less, excluding interest and expenses. The default option for arbitration was a decision by … Continue reading Simplified Arbitration Approved by SEC

FINRA Requests Comments on Proposed Amendments to FINRA Rule 4521

FINRA is seeking comment on proposed amendments to FINRA Rule 4521 (Notifications, Questionnaires and Reports) that would require specified member firms to notify FINRA no more than 48 hours after specified events that may signal an adverse change in liquidity risk. FINRA also seeks comment on a proposed new Supplemental Liquidity Schedule (SLS) that member … Continue reading FINRA Requests Comments on Proposed Amendments to FINRA Rule 4521

SEC Approves New FINRA Pay-To-Play Rules

The Securities and Exchange Commission (SEC) approved FINRA Rule 2030 (Engaging in Distribution and Solicitation Activities with Government Entities) and 4580 (Books and Records Requirements for Government Distribution and Solicitation Activities) to establish pay-to-play and related rules regulating the activities of member firms of the Financial Industry Regulatory Authority (FINRA) that engage in distribution or solicitation … Continue reading SEC Approves New FINRA Pay-To-Play Rules

Implementation Date of FINRA Rule 2242 Extended to July 16, 2016

The Securities and Exchange Commission approved the adoption of FINRA Rule 2242 (Debt Research Analysts and Debt Research Reports) to address conflicts of interest relating to the publication and distribution of debt research reports.  While FINRA Rule 2242 became effective on February 22, 2016, the implementation date has been pushed back to July 16, 2016. … Continue reading Implementation Date of FINRA Rule 2242 Extended to July 16, 2016

FINRA Proposes New Registration Category for Corporate Financing Brokers

The Financial Industry Regulatory Authority (“FINRA”) has announced a proposed new set of rules that address the needs of FINRA member firms that are solely corporate financing firms that advise companies on mergers and acquisitions, advise issuers on raising debt and equity capital in private placements with institutional investors, or provide advisory services on a … Continue reading FINRA Proposes New Registration Category for Corporate Financing Brokers

FINRA Rule 2210 Amended to Require BrokerCheck Website Hyperlink

The Financial Industry Regulatory Authority (FINRA) announced in Regulatory Notice 15-50 that the Securities and Exchange commission approved amendments to FINRA Rule 2210 (Communications with the Public) that become effective June 6, 2016.  The amendments require that each FINRA member firm’s website to include a readily apparent reference and hyperlink to BrokerCheck on: the initial … Continue reading FINRA Rule 2210 Amended to Require BrokerCheck Website Hyperlink

SEC Reduces Form U5 Wait Period to 3 Days on BrokerCheck

The Securities and Exchange Commission has approved a change to FINRA Rule 8312 (FINRA BrokerCheck Disclosure) which will reduce the waiting period from 15 days to three business days for the release of certain information reported on the Form U5 (Uniform Termination Notice for Securities Industry Registration) through BrokerCheck. Beginning on December 12, 2015, the … Continue reading SEC Reduces Form U5 Wait Period to 3 Days on BrokerCheck

FINRA Proposes Amendments to the Funding Portal Rules

The Financial Industry Regulatory Authority, Inc. (“FINRA”) has  filed with the Securities and Exchange Commission (“SEC”) a proposed rule change to adopt Funding Portal Rules 100, 110, 200, 300, 800, 900 and 1200 (collectively, the “Funding Portal Rules”) and related forms. In addition, as part of the proposed rule change, FINRA proposes to adopt new … Continue reading FINRA Proposes Amendments to the Funding Portal Rules

Comment Period is Open on FINRA’s Proposed Rule Amendments to Address the Financial Exploitation of Seniors

FINRA’s experience with its Securities Helpline for Seniors  has highlighted issues relating to financial exploitation of this group of investors.  Among these issues is a firm’s ability to quickly and effectively address suspected financial exploitation of seniors and other vulnerable adults consistent with FINRA rules. Currently, FINRA rules do not explicitly permit firms to contact … Continue reading Comment Period is Open on FINRA’s Proposed Rule Amendments to Address the Financial Exploitation of Seniors

FINRA Provides Guidance on Regulation A+ Offerings

FINRA recently published Regulatory Notice 15-32 to provide guidance regarding the FINRA filing requirements and review procedures that apply to firms that participate in Regulation A+ offerings.   Specifically, FINRA’s Corporate Financing Rules require firms that participate in Regulation A+ offerings to file with FINRA information specified in the rules.   FINRA’s Communications with the Public Rule and its … Continue reading FINRA Provides Guidance on Regulation A+ Offerings

SEC Approves FINRA Rule 2272 – Governing Sales of Securities on Military Installations

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 on the premises of any military installation to members of the U.S. Armed Forces or their dependents. The rule becomes effective March 30, 2016. The … Continue reading SEC Approves FINRA Rule 2272 – Governing Sales of Securities on Military Installations

CRD Public Records Validation Initiative Evolving to Ongoing Validation

In April 2014, the Financial Industry Regulatory Authority (“FINRA“) rolled out the CRD Public Records Validation Initiative to conduct a review of public records available for the entire population of  approximately 630,000 active registered representatives (“RRs”) for financial disclosures that may not have been reported and for criminal disclosures that may not have been reported … Continue reading CRD Public Records Validation Initiative Evolving to Ongoing Validation

FINRA Issues Liquidity Risk Management Guidance

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 failures and, when widespread, systemic crises.  To address this, FINRA has recently provided guidance on effective practices that senior management and risk managers at firms … Continue reading FINRA Issues Liquidity Risk Management Guidance

MSRB to Raise Annual and Initial Fees

The Municipal Securities Rulemaking Board (MSRB) announced in Regulatory Notice 2015-13 that it will be raising the fees assessed to its registrants (brokers, dealers, and municipal securities dealers (collectively “dealers”) and municipal advisors (collectively “regulated entities”), effective October 1, 2015.  These fees are as follows:  Rule A-11 (municipal advisor professional fee); Rule A-12 (initial and … Continue reading MSRB to Raise Annual and Initial Fees

FINRA Proposes to Adopt FINRA Rule 3280 – Private Securities Transactions

Financial Industry Regulatory Authority, Inc. (“FINRA”) has filed  a proposed rule change with the Securities and Exchange Commission (“SEC”) to adopt NASD Rule 3040 (Private Securities Transactions of an Associated Person) as FINRA Rule 3280 (Private Securities Transactions of an Associated Person) in the consolidated FINRA Rulebook. FINRA also proposes to update cross-references within other … Continue reading FINRA Proposes to Adopt FINRA Rule 3280 – Private Securities Transactions

Registration Update: 2016 Broker-Dealer & Investment Adviser Renewal

FINRA Renewals FINRA has posted the online Preliminary Renewal Statements on Web CRD and Web IARD, which commenced the 2016 renewal season for broker-dealers and investment advisers. The FINRA Renewal Calendar is as follows: November 16, 2015 – Preliminary Renewal Statements are available on Web CRD/IARD. December 18, 2015- Full payment of Preliminary Renewal Statements … Continue reading Registration Update: 2016 Broker-Dealer & Investment Adviser Renewal

SEC Approves Amendments to the Codes of Arbitration Procedure to Increase the Fees Assessed for Late Cancellation or Postponement of a Hearing

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 its arbitrators for the services they provide to FINRA’s dispute resolution forum, as well as the fees assessed to the parties for arbitration proceedings. FINRA … Continue reading SEC Approves Amendments to the Codes of Arbitration Procedure to Increase the Fees Assessed for Late Cancellation or Postponement of a Hearing

Background Investigations Now Required by FINRA

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 of the background of all potential applicants for verification of the information on the Form U4, with the goal to ascertain, by investigation, the good … Continue reading Background Investigations Now Required by FINRA

FINRA Launches 2015 Risk Control Assessment

The LeGaye Law Firm wants to advise you that FINRA launched the 2015 Risk Control Assessment (RCA) survey on June 22.  Each firm’s executive representative received an email linking to their firm’s unique RCA survey. FINRA has requested that the survey be completed by Friday, July 17, 2015. If you are a retainer client of … Continue reading FINRA Launches 2015 Risk Control Assessment

Colorado – New Email Rules Effective June 1, 2015

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 investment adviser agents who are currently registered to do business in the State of Colorado to register their current business e-mail address with the Commissioner … Continue reading Colorado – New Email Rules Effective June 1, 2015