Blog
Regulation D: Rule 504 Exemption
While reviewing documents related to a private placement engagement, you may see references to Regulation D (sometimes referred to as “Reg. D”). Regulation D consists of three SEC rules – Rules 504, 505, and 506 – that issuers often rely on to sell securities in unregistered offerings. Each rule has [...]
Identity Theft Red Flags Rule
The CFTC and the SEC are jointly issuing final rules and guidelines to require certain regulated entities to establish programs to address risks of identity theft. These rules and guidelines implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which amended the Fair Credit Reporting Act (“FCRA”). [...]
The Application of MSRB Rules to Transactions in MSRB Accounts
Registered representatives have increasingly inquired about the application of certain MSRB rules to managed accounts in which a RIA is exercising discretion to buy and sell municipal securities on behalf of the account holder. Specifically, with respect to these transactions, they are expected to: Provide the time-of-trade disclosures required by [...]
FINRA Report Filings for Next Year
FINRA has put out a schedule for its member broker-dealers with the due dates for report filings that are due in 2017 or in the first quarter of 2018. This notice serves as a reminder to help FINRA and SEC registered broker-dealers stay compliant by filing reports on or before [...]
Nontraditional Exchange-Traded Funds: Suitability Guidelines
On June 8, 2016, FINRA published a News Release to announce that it had fined Oppenheimer & Co. Inc. (“Oppenheimer”) $2.25 million for failing to reasonably supervise transactions in nontraditional exchange-traded funds (“ETFs”). Through this disciplinary action, FINRA has made its expectations abundantly clear: A broker-dealer offering nontraditional ETFs must [...]
MSRB announces Interpretive Notice re: Time of Trade Disclosure
MSRB Rule G-47, as it relates to time of trade disclosure, requires firms to disclose, at or prior to the time of trade, all material information known about the transaction, as well as material information about the municipal security that is reasonably accessible to the market. The MSRB has previously [...]