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Customer Complaints in the Social Media Era – FINRA Rule 4530
As technology continues to advance, the Financial Industry Regulatory Authority “FINRA”) must address how certain regulations will be interpreted as it relates to social media platforms. FINRA Rule 4530 requires firms to promptly report to FINRA, no later than 30 calendar days, after it knows or should have known that [...]
What is the SIE Exam?
As mentioned in our previous post, What is on the Series 7 exam, the FINRA has restructured the examination process and implemented a new exam, the Securities Industry Essential exam (“SIE”). On October 1, 2018, the SIE exam will become a prerequisite to all of the FINRA’s representative-level qualification exams [...]
FINRA Rule 3120: Supervisory Control System
Supervisory System A firm’s supervisory system serves as its foundation to building a robust compliance program. It is important that firms tailor their supervisory system to their business activities, how the firm is organized and operated, regulatory requirements, and other key considerations determined by the firm. […]
Safe Harbor Rules Relating to Soft Dollars
What are Soft Dollars? In asset management and the securities industry, soft dollars refers to an asset manager’s use of commissions to pay for investment research and brokerage services. Commissions Commissions are defined as a markup, markdown, commission equivalent or other fee paid by a managed account to a [...]
Large Trader – Rule 13h-1 (Part 2)
For Part 1, please see Large Trader-Rule 13h-1 (Part 1). Part 2 A large trader is required to file a Form 13H Initial Filing promptly after effecting aggregate transactions equal to or greater than the Identifying Activity Level threshold. After initial filing, Rule 13h-1(b)(1)(ii) specifies that an annual filing must be [...]
The Importance of a Chinese Wall in Multi-Service Securities Firms
Multi-service securities firms have a high risk of insider trading as information can seep through to other departments. The antifraud provisions of the federal securities laws restricts all persons from trading based on material non-public information. Therefore, multi-service securities firms such as those that offer investment banking, corporate counseling, and [...]