Blog
Data Storage and Cybersecurity Best Practices
Broker Dealers and Registered Investment Advisors (“RIAs”) live in a time of data threats from all angles. The financial services industry is faced with many unique requirements for storing sensitive client data for extended timeframes, and by doing so, the industry has become a primary and lucrative target for scammers. [...]
Rule 4111 Restricted Broker-dealer Obligations and Heightened Supervision
While the subject matters of FINRA Rule 4111 and heightened supervision do not happen with great frequency, they are two topics that need to be discussed because when these rules do come into play, they can change a broker dealer drastically. Restricted broker dealer obligations and heightened supervision go hand [...]
FINRA Rule 2111 – Suitability in Broker Dealer Relationships
Being a broker dealer in today’s environment is a complicated and complex role. Included in this complexity is ensuring that your broker dealer operates with the highest ethical standards and providing the best possible considerations for your client. Having your client’s best interest at the forefront is essential. Suitability, in [...]
Broker Dealer Advertising
Has your broker dealer investigated using advertising materials in order to attract new clients, promote a service that your broker dealer provides, or simply tried to establish your firm’s brand within the industry? Advertising is a great tool that can increase your broker dealer business opportunities, but it does come [...]
Initial Public Offerings and New Issues
Trust and transparency are the cornerstones of the financial industry. This includes broker dealers. As part of this framework, the Financial Industry Regulatory Authority (“FINRA”) created Rules 5130 and 5131 to govern broker dealers regarding the issuance of new securities. FINRA Rule 5130 places restrictions on the purchase and sale [...]
Excessive Trading
It is not an uncommon practice for a client to bring his or her money to a broker dealer for investing to grow their wealth. When this happens, how does your broker dealer invest it? Are there precautions in place to prevent your broker dealer’s registered representatives from mismanaging those [...]