Blog
FINRA Rule 4530 Reporting Requirements
FINRA Rule 4530 (Reporting Requirements) requires FINRA member firms to report to FINRA specified events, such as findings by a regulatory body and quarterly statistical and summary information regarding written customer complaints. FINRA Rule 4530 also requires firms to file copies of specified criminal actions, civil complaints and arbitration claims. [...]
Broker-Dealer’s New Hire Process
A broker-dealer’s new hire process can be long and stressful. It is always a firm’s goal to hire the best individual in the applicant pool. Once a firm narrows down its search and decides on a hire, the process is long from over. FINRA has established several regulations that must [...]
Transmitting Customer Funds for Subscription-Way Transactions
On July 9, 2016, FINRA Rule 2341 (Investment Company Securities) superseded NASD Rule 2830 (Investment Company Securities). Some of you may recall that FINRA published Regulatory Notice 15-23 in June 2015 to provide broker-dealers with limited relief from NASD Rule 2830(m). A broker-dealer meeting certain conditions listed in that Regulatory [...]
TRACE – Another Proposed Rule Change
FINRA is proposing to expand the Trade Reporting and Compliance Engine (TRACE) reporting rules to include most secondary market transactions in marketable U.S. Treasury securities. The market in U.S. Treasury securities—or Treasuries —is the deepest and most liquid government securities market in the world. Treasuries are traded by broker-dealers as [...]
Amendment to FINRA RULE 4524: OBS Requirements
In April 2016, the Securities and Exchange Commission (SEC) approved a proposed amendment to FINRA Rule 4524 (Supplemental FOCUS Information). The approved amendment alters the instructions to the Derivatives and Other Off-Balance Sheet Items Schedule (OBS), expanding the application of the OBS to certain non-carrying or non-clearing firms with significant [...]
Private Placement Filing Requirements under FINRA Rule 5123
In recent years, FINRA has enacted new rules regarding private placement transactions of FINRA member firms – FINRA Rule 5122 (Private Placements of Securities Issued by Members) and FINRA Rule 5123 (Private Placement of Securities). Each of these rules has its own filing requirements, as well as specified exemptions from such filings. [...]