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FINRA recently published a Regulatory Notice to announce that it is currently soliciting comment on proposed amendments to FINRA Rule 2210 (Communications with the Public). Rule 2210 provides that communications may not predict or project performance, imply that past performance will recur or make any exaggerated or unwarranted claim, opinion or forecast. lucky patcher ios 10 The general prohibition against performance projections is largely intended to protect retail investors from performance projections of individual investments, which often prove to be spurious, inaccurate or otherwise misleading. On the other hand, information regarding the expected performance of an asset allocation or Read More....
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As a broker-dealer compliance company, we are often consulted about the process of submitting fingerprints for FINRA approval. Who Needs to Be Fingerprinted? Section 17f-2 of the Securities Exchange Act (SEA) of 1934 states that that “every member of a national securities exchange, broker, dealer, registered transfer agent, registered clearing agency, registered securities information processor, national securities exchange, andnational securities association shall require that each of its partners, directors, officers, and employees be fingerprinted.” Therefore, the following types of employees are exempt: employees who do not sell securities; employees who do not regularly have access to the keeping, handling, or Read More....
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FINRA Rule 4517 – Member Filing and Contact Information Requirements FINRA Rule 4517 requires member broker-dealers to report and update to FINRA all contact information required by FINRA via Firm Gateway. Specifically, each registered broker-dealer is required to report and update all contact information required by FINRA via the Firm Gateway. Additionally, broker-dealers must update its required contact information promptly, but in any event not later than 30 days following any change in such information. Lastly, member firms must review and, if necessary, update its required contact information within 17 business days after the end of each calendar year. This Read More....
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The MSRB is requesting comment on draft amendments to MSRB Rule G-26 related to customer account transfers. The draft amendments are primarily designed to modernize the rule and promote a uniform customer account transfer standard for all broker-dealers. Rule G-26 requires broker-dealers to cooperate in the transfer of customer accounts and specifies procedures for carrying out the transfer process. Such transfers occur when a customer decides to transfer an account from one broker-dealer, the carrying party to another, the receiving party. The rule establishes specific time frames within which the carrying party is required to transfer a customer account; limits Read More....
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In today’s ever morphing environment, business restructures are quite common. Broker-dealers often undergo mergers, acquisitions, or successions. And, the restructuring of broker-dealers aren’t simple tasks. Once a FINRA member firm decides it may want to restructure, there a number of things that should be considered. FINRA addresses the regulatory considerations a firm should account form related to restructuring in NASD Rule 1017. Rule 1017 establishes that a FINRA member firm must receive FINRA approval to undergo organizational changes such as mergers, acquisitions, asset transfers, and material changes in business. A principal from your firm should review Rule 1017 to learn Read More....
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FINRA has recently proposed certain amendments to Rule 4554 (Alternative Trading Systems— Recording and Reporting Requirements of Order and Execution Information for NMS Stocks) to require ATSs to provide additional order sequence information on reports submitted to the Order Audit Trail System (‘‘OATS’’). In May 2016, the SEC approved Rule 4554 to further enhance FINRA’s ability to reconstruct an ATS’s order book and better perform its order-based surveillance, which includes surveillance for layering, quote spoofing and mid-point pricing manipulation. To accomplish this, Rule 4554 requires ATSs to report order information for each order they receive in an NMS stock beyond Read More....
