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SEC Approves Rule Set for Capital Acquisition Brokers
The SEC recently approved FINRA’s proposed rule change to adopt a new Rule set for firms that meet the definition of “capital acquisition brokers” and that elect to be governed under this rule set (collectively, the ‘‘CAB rules’’). […]
SEC Rule 17a-4: Electronic Storage Media
Under certain conditions, a broker-dealer may maintain and preserve records by means of “electronic storage media.” SEC Rule 17a-4 defines that term as “any digital storage medium or system” that meets the conditions set forth in the rule. Many common forms of digital storage media (for example, flash drives, backup [...]
FINRA Annual Renewal Program
FINRA member firms are required to annually renew their registrations with FINRA, other self-regulatory organizations (SRO’s), and states/jurisdictions. The FINRA annual Renewal Program begins with the fourth quarter each year. Rather than require firms to submit each individual renewal payment to each individual regulatory body, FINRA collects all applicable renewal [...]
Outside Business Activities (OBAs) Disclosure Obligations
In accordance with FINRA Rule 3270, all registered persons must provide written notice to and receive approval from their firm prior to engaging in any outside business activities. In addition to the obligation on the part of the registered rep, member firms must implement reasonable controls related to reporting, approving, [...]
FINRA Rule 3110(e): Form U4 Verification Process
In our August 31 post about FINRA Rule 3110(e) (Supervision: Responsibility of Member to Investigate Applicants for Registration), we discussed the necessity of background checks and the expected depth and breadth of the investigation process. Rule 3110(e) also requires that FINRA member firms adopt written procedures to verify the accuracy [...]
Suitability Obligation under FINRA Rule 2111
We have updated this post! We are leaving this post up as to not disturb any saved links; however, please visit our more recent post, FINRA Rule 2111: Reasonable-Basis Suitability, for current information on the topic. […]