Tag Archives: FINRA

Automatic Transfers

Automatic transfers: Firms with sufficient monies in their Flex-Funding Accounts will have funds transferred to their Renewal Accounts to cover total renewal fees owed. Transfers will b e conducted every day until any outstanding renewal assessment is satisfied.

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

Firm Fined $2.6 Million for Failures in Electronic Records and Email Retention

The Financial Industry Regulatory Authority (FINRA) has fined Scottrade, Inc. $2.6 million for failing to retain a large number of securities-related electronic records in the required format, and for failing to retain certain categories of outgoing emails.  Additionally, FINRA set forth in its findings that Scottrade also did not have a reasonable supervisory system in … Continue reading Firm Fined $2.6 Million for Failures in Electronic Records and Email Retention

Automatic Transfers to Renewal Accounts

Firms with sufficient monies in their Flex-Funding accounts will have funds transferred to their Renewal Accounts to cover total renewal fees owed.   Transfers will be conducted every day until Web CRD/IARD shuts down for year-end processing.

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

Comment Period Ends: Proposed FINRA Rules Relating to Financial Exploitation of Seniors and Other Vulnerable Adults

FINRA seeks comment on proposed rules addressing the financial exploitation of seniors and other vulnerable adults. FINRA is proposing: (1) amendments to FINRA Rule 4512 (Customer Account Information) to require firms to make reasonable efforts to obtain the name of and contact information for a trusted contact person for a customer’s account; and (2) the adoption of new FINRA Rule 2165 (Financial Exploitation of Specified Adults) to permit qualified persons of firms to place temporary holds on disbursements of funds or securities from the accounts of specified customers where there is a reasonable belief of financial exploitation of these customers.

Effective Date: Electronic Submission of Subordinated Loan Requests

FINRA is launching, effective November 30, 2015, a new electronic platform on Firm Gateway for firms to submit all new requests for approval of proposed subordinated loan agreements and secured demand note agreements (referred to as subordinations), including renewals of existing agreements. This Notice discusses the electronic submission process, which will replace the current submission of subordination requests in hard copy form to FINRA.

As of November 30, 2015, all new requests must be submitted in electronic form through Firm Gateway, and FINRA will no longer accept new requests filed in hard copy form.

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’s Top 3 Regulatory Concerns for 2016 Examination Focus

Richard Ketchum, Chairman and CEO  of the Financial Industry Regulatory Authority (FINRA), shared his thoughts on the top 3 regulatory concerns for 2016 recently at the SIFMA  Annual Conference.  His observations were in response to Ben A. Indek, an  attorney at Morgan Lewis, who asked Ketchum about what we can expect on next year’s annual examination … Continue reading FINRA’s Top 3 Regulatory Concerns for 2016 Examination Focus

2016 Renewals: B-D, IA – Firm, Agent & Branch

FINRA advises FINRA-registered firms that failure to remit full payment of their Preliminary Statements to FINRA by December 18, 2015, may cause the firm to become ineligible to do business in the jurisdictions where it is registered, effective January 1, 2016. FINRAregistered firms will also be subject to a late fee if payment is not received by December 18, 2015.

FINRA Rule to Increase Transparency in OTC Equities Market

The Financial Industry Regulatory Authority (FINRA) has announced the U.S. Securities and Exchange Commission’s (SEC) recent approval of FINRA’s proposal to expand its transparency initiative for over-the-counter (OTC) equity securities. Under the newly approved rule, FINRA will supplement the alternative trading system (ATS) volume it currently publishes with all other equity volume executed over-the-counter by … Continue reading FINRA Rule to Increase Transparency in OTC Equities Market

FINRA Small Firm Conference

The Small Firm Conference focuses on small firms’ practices and tips for complying with FINRA rules. Each session begins with a FINRA staff member highlighting key requirements of a rule, and then small firm panelists provide a step-by-step approach for complying with that particular rule.

Comments Period Ends: Proposal to Merge FINRA Dispute Resolution Subsidiaries

The SEC comment period ends November 3, 2015 on FINRA’s proposal to merge its dispute resolution subsidiaries, FINRA Dispute Resolution, Inc. into and with its regulatory subsidiary, FINRA Regulation, Inc. FINRA’s existing dispute resolution program would continue to operate as a separate department within FINRA Regulation, and would be referred to as the Office of Dispute Resolution.

FINRA Files Rule with SEC for Authority to Designate Firms for Mandatory Participation in FINRA’s Business Continuity/Disaster Recovery Testing

As required by Regulation Systems Compliance and Integrity (Regulation SCI), FINRA has adopted new Rule 4380 related to mandatory member firm participation in business continuity and disaster recovery (BC/DR) testing. The new rule authorizes FINRA to designate firms that must participate in FINRA’s BC/DR testing under Regulation SCI, which will be conducted once per year. … Continue reading FINRA Files Rule with SEC for Authority to Designate Firms for Mandatory Participation in FINRA’s Business Continuity/Disaster Recovery Testing

Effective Date – New FINRA Rules for Cease & Desist Orders

The SEC approved amendments to FINRA rules for Cease & Desist Orders. The new rules and amendments lower the evidentiary standard to impose a temporary cease and desist order (TCDO); created a new expedited proceeding for repeated failures to comply with a TCDO or a permanent cease and desist order (PCDO); harmonized the provisions governing how documents are served in temporary cease and desist and expedited proceedings; clarified FINRA’s authority to impose a PCDO; and ease FINRA’s administrative burden in temporary cease and desist proceedings. The amendments become effective on November 2, 2015.

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

FINRA Targets Firms for Failing to Apply Sales Charge Discounts

The Financial Industry Regulatory Authority (FINRA)  ordered 12 firms to pay restitution totaling more than $4 million and fines totaling more than $2.6 million for failing to apply available sales charge discounts to customers’ purchases of Unit Investment Trusts (UITs), and related supervisory failures. A UIT is a type of investment company that offers redeemable … Continue reading FINRA Targets Firms for Failing to Apply Sales Charge Discounts

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 Rules Amended to Expedite Cease and Desist Orders

The Securities and Exchange Commission (SEC) recently approved amendments to the Financial Industry Regulatory authority (FINRA) rules that lower the evidentiary standard to impose a temporary cease and desist order (TCDO); create a new expedited proceeding for repeated failures to comply with a TCDO or a permanent cease and desist order (PCDO); harmonize the provisions … Continue reading FINRA Rules Amended to Expedite Cease and Desist Orders

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

2016 FINRA Annual Conference: Special Discounted Registration Rate

Interested in getting a discounted registration rate on the 2016 FINRA Annual Conference May 23-25, 2016? FINRA is offering discounts for those who meet requirements before Oct. 1. The special discounted rate for the first 100 in-person registrants is non-refundable. For all other registration categories, a full refund—less a $150 processing fee—will be granted to … Continue reading 2016 FINRA Annual Conference: Special Discounted Registration Rate

FINRA Board Approves Rulemaking Item to Protect Seniors

The Financial Industry Regulatory Authority (FINRA) announced that its Board of Governors approved a rulemaking item to help firms better protect seniors and other vulnerable adults from financial exploitation. The proposal would allow a firm to place a temporary hold on a disbursement of funds or securities and notify a customer’s trusted contact when the … Continue reading FINRA Board Approves Rulemaking Item to Protect Seniors

FINRA Revises the Series 4 Examination Program

FINRA periodically reviews the content of qualification examinations to determine whether revisions are necessary or appropriate in view of changes—including changes to the laws, rules and regulations—pertaining to the subject matter the examinations cover. Based on this review process, FINRA has revised the Registered Options Principal (Series 4) examination program. The changes are reflected in … Continue reading FINRA Revises the Series 4 Examination Program

FINRA Cracksdown on Broker Migration

The Financial Industry Regulatory Authority (FINRA) announced that as a result of a 2014 onsite exam, it found securities violations including various misleading sales pitches, customer account churning and other business misconduct at Global Arena Capital Corp.  As a result, it has barred seven former registered representatives from the securities industry, suspended an eighth person … Continue reading FINRA Cracksdown on Broker Migration

FINRA Half-Day Compliance Boot Camp: New York

Half-day Compliance Boot Camps focus on basic regulatory requirements and compliance responsibilities. Participants are required to complete approximately three hours of assigned pre-course readings and online coursework prior to attending the session. Pre-course work is assigned and distributed approximately one week before the session. This course is designed for compliance professionals who are new to … Continue reading FINRA Half-Day Compliance Boot Camp: New York

FINRA Half-Day Compliance Boot Camp: Seattle

FINRA Half-day Compliance Boot Camp focuses on basic regulatory requirements and compliance responsibilities. Participants are required to complete approximately three hours of assigned pre-course readings and online coursework prior to attending the session. Pre-course work is assigned and distributed approximately one week before the session. This course is designed for compliance professionals who are new to the role or those looking to reinforce their understanding of regulatory requirements and compliance responsibilities.

FINRA Ombudsman Office Releases 2014 Report

The Office of the Ombudsman for the Financial Industry Regulatory Authority (FINRA) recently issued its 2014 Report regarding its activities.  The primary mission of the Ombudsman’s Office is to provide assistance to investors, brokerage firms, individual brokers, and any other business or individual who interacts with FINRA and has concerns regarding unfair treatment or inconsistent regulatory practices. As an independent, … Continue reading FINRA Ombudsman Office Releases 2014 Report

Net Capital Deficiency Costs Charles Schwab Millions

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 deficiencies occurred on three separate dates in 2014, and ranged from $287 million to $775 million. FINRA found that on three occasions between May 15, … Continue reading Net Capital Deficiency Costs Charles Schwab Millions

FINRA Rule Start Date: Series 50 Exam Fee

Rule change to amend Section 4(c) of Schedule A to the FINRA By-Laws to establish an administration and delivery fee for the new Municipal Advisor Representative Examination (“Series 50 examination”). Click here for full discussion of rule change.

FINRA Rule Start Date: NASD Rule 3040 now FINRA Rule 3280

Rule change 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 without any substantive changes. FINRA also proposes to update cross-references within other FINRA rules accordingly.

FINRA Half-Day Compliance Boot Camp: Boca Raton, Florida

FINRA Half-day Compliance Boot Camp focuses on basic regulatory requirements and compliance responsibilities. Participants are required to complete approximately three hours of assigned pre-course readings and online coursework prior to attending the session. Pre-course work is assigned and distributed approximately one week before the session. This course is designed for compliance professionals who are new to the role or those looking to reinforce their understanding of regulatory requirements and compliance responsibilities.

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

FINRA Issues Targeted Exam Letter: Compensation Conflicts of Interest Review

FINRA recently issued a Targeted Exam Letter that is focused on conflicts of interest with respect to compensation practices for retail brokerage firms.   As noted in FINRA’s Annual Priorities Letter, conflicts of interest continue to represent a recurring challenge that contribute to compliance and supervisory breakdowns which can lead to firms and registered representatives, at times, compromising … Continue reading FINRA Issues Targeted Exam Letter: Compensation Conflicts of Interest Review

Effective Date of FINRA Rule 2040 – Payment to Unregistered Persons

FINRA Rule 2040 (“Rule”) governs the payment of transaction-based compensation by member firms to unregistered persons.  The new amendment to the Rule is effective August 24, 2015. The amended It expressly aligns the rule with Section 15(a) of the Securities Exchange Act of 1934 (SEA or Exchange Act) and its related guidance to determine whether … Continue reading Effective Date of FINRA Rule 2040 – Payment to Unregistered Persons

Comment Period Ends: FINRA Request for Revised Proposal to Adopt FINRA Rule Regarding Discretionary Accounts and Transactions

FINRA has requested comments on a revised proposal to adopt the NASD and Incorporated NYSE rules regarding discretionary accounts and transactions as FINRA Rule 3260 (Discretionary Accounts and Transactions by Persons Other Than the Customer) in the consolidated FINRA rule book. In addition,he revised proposal addresses the treatment of customers’ free credit balances, sweep programs, … Continue reading Comment Period Ends: FINRA Request for Revised Proposal to Adopt FINRA Rule Regarding Discretionary Accounts and Transactions

Comment Period Ends on Proposed Rule Change to Amend FINRA Rule 2210 (Communications with the Public)

The SEC requested public comment on a proposal to amend FINRA Rule 2210 (Communications with the Public) to require a readily apparent reference and hyperlink to BrokerCheck® on: (1) the initial webpage that the member intends to be viewed by retail investors; and (2) any other webpage that includes a professional profile of one or more registered persons who conduct business with retail investors. These requirements would not apply to a member that does not provide products or services to retail investors, or to a directory or list of registered persons limited to names and contact information.

SEC Approves New FINRA Debt Research Analysts & Report Rules

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 distribution of debt research reports. FINRA Rule 2242 (“Debt Research Rules”) represents a tiered approach that, in general, would provide retail debt research recipients with … Continue reading SEC Approves New FINRA Debt Research Analysts & Report Rules

Ballots Due: FINRA Board of Governors Election

Ballots for FINRA’s election to fill one small firm seat, one mid-size firm seat and one large firm seat on the FINRA Board of Governors must be submitted prior to the Annual Meeting scheduled for July 30, 2015.

Comment Period Ends: Proposed Rule Change to Amend FINRA Rule Series Regarding Temporary & Permanent Cease and Desist Orders

The SEC requested comments on a proposal to amend FINRA Rule Series 9100, 9200, 9300, 9550 and 9800 to (1) modify the evidentiary standard that must be met to impose a temporary cease and desist order; (2) adopt a new expedited proceeding for repeated failures to comply with temporary or permanent cease and desist orders; (3) ease administrative burdens in temporary cease and desist proceedings; (4) harmonize the provisions governing how documents are served in temporary cease and desist proceedings and expedited proceedings; (5) clarify the process for issuing permanent cease and desist orders; and (6) make conforming changes throughout FINRA’s Code of Procedure.

Comment Period Ends: Concept Proposal to Restructure Qualification Examination Program

The comment period ends July 27, 2015 on FINRAs concept proposal to restructure the registered representative-level qualification examination program into a format whereby all potential representative-level registrants would take a general knowledge examination and an appropriate specialized knowledge examination to reflect their particular registered role. For purposes of the proposal, the general knowledge examination would  be … Continue reading Comment Period Ends: Concept Proposal to Restructure Qualification Examination Program

FINRA Extends Deadline for 2015 Risk Control Assessment

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 which individual member firms engage, the products and services they sell, the kinds of clients and counterparties with which they deal, and to further understand … Continue reading FINRA Extends Deadline for 2015 Risk Control Assessment

The Impact of “Ban the Box” Legislation on FINRA Broker-Dealers

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” initiative, a National Employment Law Project. The Ban the Box initiative is named for the checkbox on applications asking about a job applicant’s criminal background, … Continue reading The Impact of “Ban the Box” Legislation on FINRA Broker-Dealers

SEC and FINRA to Hold National Compliance Outreach Program for Broker-Dealers

WASHINGTON — The Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) today announced the opening of registration for their 2015 National Compliance Outreach Program for Broker-Dealers. The program is intended to provide an open forum for regulators and industry professionals to discuss compliance practices and exchange ideas on effective compliance structures. The … Continue reading SEC and FINRA to Hold National Compliance Outreach Program for Broker-Dealers

CRD Public Records Validation 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 not have been reported and for criminal disclosures that may not have been reported by RRs who have not been fingerprinted within the last five … Continue reading CRD Public Records Validation Initiative

FINRA Requests Comments on Revised Proposal Regarding Discretionary Accounts

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 Accounts and Transactions by Persons Other Than the Customer) in the consolidated FINRA rulebook. In addition, the revised proposal addresses the treatment of customers’ free … Continue reading FINRA Requests Comments on Revised Proposal Regarding Discretionary Accounts

FINRA Boot Camp: Supervision and Branch Office Inspections

Half-day Compliance Boot Camps focus on basic regulatory requirements and compliance responsibilities. Participants are required to complete approximately three hours of assigned pre-course readings and online coursework prior to attending the session. Pre-course work is assigned and distributed approximately one week before the session. This course is designed for compliance professionals who are new to … Continue reading FINRA Boot Camp: Supervision and Branch Office Inspections

FINRA Requests Comment on Proposed Amendments to Rules Governing Communications With the Public

FINRA is soliciting comment on proposed amendments to the FINRA rules governing communications with the public. The proposed amendments would revise the filing requirements in FINRA Rule 2210 (Communications with the Public) and FINRA Rule 2214 (Requirements for the Use of Investment Analysis Tools) and the content and disclosure requirements in FINRA Rule 2213 (Requirements … Continue reading FINRA Requests Comment on Proposed Amendments to Rules Governing Communications With the Public

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

Effective Date of consolidated FINRA Rule 3110(e)

The SEC approved FINRA’s proposed rule change to adopt NASD Rule 3010(e) (Qualifications Investigated) relating to background checks on registration applicants as FINRA Rule 3110(e).  FINRA Rule 3110(e) becomes effective on July 1, 2015. 3110(e) is based in part on substantially similar provisions in NASD Rule 3010 (e) and includes new provisions relating to the … Continue reading Effective Date of consolidated FINRA Rule 3110(e)

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

FINRA Launches National Ad Campaign

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 air 15-second commercials for five weeks on cable channels, including CNBC, Bloomberg, CNN, MSNBC, Fox Business, Fox News, ESPN, Discovery, The History Channel and HGTV. … Continue reading FINRA Launches National Ad Campaign

District 8 Chicago – District Compliance Event

Designed for compliance and legal professionals at FINRA member firms, these events offer an opportunity to hear about current regulatory issues while engaging in a direct dialogue with FINRA District Office staff. – See more at: Regional Event.

FINRA Board of Governors Election: Petitions for Candidacy Due

The annual meeting of FINRA firms will take place on or about Thursday, July 30, 2015, to elect one Small Firm Governor, one Mid-Size Firm Governor and one Large Firm Governor to the FINRA Board of Governors (FINRA Board). A formal notice of the meeting, including the precise date, time and location, will be mailed … Continue reading FINRA Board of Governors Election: Petitions for Candidacy Due

FINRA Small Firm Conference Registration – California

Registration is now open for FINRA’s Small Firm Conference, which focuses on small firms’ practices and tips for complying with FINRA rules. Each session begins with a FINRA staff member highlighting key requirements of a rule, and then small firm panelists provide a step-by-step approach for complying with that particular rule. Topics featured at least … Continue reading FINRA Small Firm Conference Registration – California

FINRA Requests Comments Proposal to Restructure the Representative-Level Qualification Examination Program

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 general knowledge examination and an appropriate specialized knowledge examination to reflect their particular registered role. For purposes of this proposal, the general knowledge examination will … Continue reading FINRA Requests Comments Proposal to Restructure the Representative-Level Qualification Examination Program

2015 FINRA Annual Conference

FINRA’s Annual Conference provides compliance professionals, securities attorneys, and other industry leaders with the opportunity to hear regulatory priorities and share compliance solutions. Click here for further details. FINRA Annual Conference May 27 – 29, 2015 Washington, DC Registration is now open to attend the 2015 FINRA Annual Conference in person or via live broadcast. The … Continue reading 2015 FINRA Annual Conference

Comment Period Ends: Proposal to Require Registration of Associated Persons Involved in the Design, Development or Significant Modification of Algorithmic Trading Strategies

Regulatory Notice 15-06 stated that FINRA is soliciting comment on a proposal to require registration as a Securities Trader of associated persons primarily responsible for the design, development or significant modification of algorithmic trading strategies, or who are responsible for supervising or directing such activities. The comment period expires May 18, 2015.

FINRA 2015 Risk Control Assessment (RCA) Survey

FINRA plans to administer this year’s RCA in the May/June timeframe—and will announce the specific date in the Weekly Update email. The RCA is an important part of FINRA’s risk-based examination program, in that the information collected from firms helps us better understand firms’ businesses so examiners can arrive for examinations focused on any areas … Continue reading FINRA 2015 Risk Control Assessment (RCA) Survey

FINRA Regulatory Notice 15-04 Fixed Income Price Dessimination

  Executive Summary FINRA is soliciting comment on a proposal to expand dissemination of TRACE data to include additional Securitized Products, specifically, collateralized mortgage obligations (CMOs), commercial mortgage-backed securities (CMBSs) and collateralized debt obligations (CDOs). FINRA is proposing to reduce the reporting time frame for these additional Securitized Products from end-of-day to 45 minutes and, … Continue reading FINRA Regulatory Notice 15-04 Fixed Income Price Dessimination

FINRA Rule 0190 Effective August 24, 2105

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; Non-members of the Association).  The rule confirms that a member firm will be considered as a non-member of FINRA from the effective date of any … Continue reading FINRA Rule 0190 Effective August 24, 2105

Regulatory Notice: Effective Date for Changes to Qualification Examination Fees

In FINRA Notice to Members 15-08 , FINRA noted that it regularly conducts a comprehensive review of the examination fee structure, including an analysis of the costs associated with developing, administering and delivering each examination, so that FINRA may better understand whether pricing changes are warranted and evaluate the financial condition of each qualification examination … Continue reading Regulatory Notice: Effective Date for Changes to Qualification Examination Fees

Amendment to FINRA Rule 8311 Approved

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 provisions in NASD IM-2420-2, the most significant impact is that it clarified  the scope of the rule on payments by member firms to persons subject … Continue reading Amendment to FINRA Rule 8311 Approved

LeGaye Law Firm Quoted: Article on Client On-Boarding

Daniel LeGaye, Managing Partner of the LeGaye Law Firm PC, was quoted in a March 17, 2015 article on the broadening impact on the on-boarding precess of financial firms that is  presented by new regulations regarding client due-diligence process proposed by FinCEN to backstop FACTA and documentation of disclosures related to conflicts of interest disclosures.    … Continue reading LeGaye Law Firm Quoted: Article on Client On-Boarding

FINRA Backing Away From Reliance on Rule 8210 for Routine Information Requests

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 Senior Staff session of the FINRA 2014 Conference in Washington DC, Susan Axelrod, Executive Vice President of Regulatory Operations at FINRA, discussed internal guidelines that … Continue reading FINRA Backing Away From Reliance on Rule 8210 for Routine Information Requests

FINRA Comment Letter – Regulatory Notice 14-09; Limited Corporate Financing Broker (LCFB)

FINRA Comment Letter – Regulatory Notice 14-09; Limited Corporate Financing Broker (LCFB) The Financial Industry Regulatory Authority (FINRA) published Regulatory Notice 14-08 (Regulatory Notice) seeking comments on a proposed rule set (Proposed Rule Set”) for member firms that meet the definition of “limited corporate financing broker” (LCFB).  It is a positive sign that FINRA acknowledges that … Continue reading FINRA Comment Letter – Regulatory Notice 14-09; Limited Corporate Financing Broker (LCFB)

FINRA Announces Proposed Rules for Limited Corporate Financing Broker Category

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 of broker-dealer called the Limited Corporate Financing Brokers (“LCFB”). The LCFB Rule set will be comprised of new FINRA rules 010 to 1000. The comment … Continue reading FINRA Announces Proposed Rules for Limited Corporate Financing Broker Category

FINRA Rule 4524 Increases Reporting Obligations For Member Firms

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 for compliance professionals. With the approval of FINRA Rule 4524 (the Rule), starting September 30, 2012, FINRA member firms will now be required to file … Continue reading FINRA Rule 4524 Increases Reporting Obligations For Member Firms

FINRA Comment Letter – Rule 2040 – Payments to Non-Registered Persons

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 to amend its rules governing payments to unregistered persons through a proposed FINRA Rule 2040 (Proposed Rule).  As stated by FINRA in the Regulatory Notice, … Continue reading FINRA Comment Letter – Rule 2040 – Payments to Non-Registered Persons