Blog
What is Custody?
Custody remains a focus area for SEC and state regulators alike. Firms should review the guidance released by the SEC to learn what steps can be taken to avoid having inadvertent custody requiring an independent surprise examination. Guidance Issued by the SEC: Inadvertent Contractual Custody In guidance notice No. 2017-01, [...]
What is Form U5 and What is it used for?
The Form U5 is the Uniform Termination Notice for Securities Industry Regulations. Upon terminating a registered representative or an investment advisor from a firm, whether voluntary or involuntary, a Form U5 must be filed. The form must be filed in the appropriate jurisdictions and/or self- regulatory organizations (“SROs”). It can [...]
FINRA’S COMPLIANCE CALENDAR – January 2018
IT’S ALMOST 2018!!!! As we approach the New Year, firms should make sure that they start off on a good note. Below are the regulatory filings, request for comments, and certification due dates for the month of January. FINRA does not list any conferences or events for the month. JANUARY [...]
FINRA’S EXAMINATION FINDINGS
Recently, the Financial Industry Regulatory Authority (“FINRA”) released a report detailing its observations from its cycle examination program. FINRA hopes the report will assist broker-dealers in strengthening their compliance with securities rules and regulations. FINRA noted that the report does not represent a complete inventory of observations about the industry [...]
What is Form U4 and What Sections are on it?
Form U4 is the Uniform Application for Securities Industry Registration or Transfer. Representatives of broker-dealers, investment advisers, or issuers of securities must fill out the Form U4 to become registered in the appropriate jurisdictions and/or SROs. The form is filled out electronically within the Central Registration Depository (“CRD”) or the [...]
FINRA Rule 2210 and Social Networking Websites
FINRA Rule 2210 requires that firms retain records of communications that relate to their “business as such” under Rule 17a-4(b) of the Securities Exchange Act of 1934 (SEA). Therefore, it is the content of the broker’s communication that determines whether it is regulated under Rule 2210. However, how does the [...]