SEC Archives - Page 2 of 22 - MasterCompliance

Key Steps for Starting a Broker-Dealer

Posted on November 15, 2022 by SCM Communications

Individuals and companies desire to start a broker-dealer for many reasons including to facilitate sales, create an entry point for foreign financial institutions, or be a part of a larger financial plan. Some of the benefits to starting a broker-dealer (vs. purchasing an existing one) include saving money on due diligence, having no prior regulatory or financial issues, and the ability to customize it to fit your desired products and business lines. If you are looking for more pros and cons to starting vs. Buying a broker-dealer, read one of our recent posts on the topic “here”. If you decide Read more about Key Steps for Starting a Broker-Dealer[…]

What’s ‘New’ about the SEC’s New Marketing Rule for Investment Advisers?

Posted on July 29, 2022 by admin

Marketing and advertising in the mid-20th Century was very different then what exists in today’s world of social media. Marketing and advertising are constantly evolving. Today’s social media influencers, hashtags, comments, likes, and posts can all be used for marketing purposes. With this in mind, it makes sense that regulations should evolve as well and not be stuck in the past. In December 2020, the SEC adapted regulations to better align with the 21st Century’s marketing environment. The 1961 Advertising Rule 206(4)-1 2021 combined with the Cash Solicitation Rule206(4)-3 will now be regulated under a single rule referred to as Read more about What’s ‘New’ about the SEC’s New Marketing Rule for Investment Advisers?[…]

ESG Investing

Posted on June 17, 2022June 24, 2022 by admin

ESG (Environmental, Social and Governance) products and financial services have become a popular word in the world of regulation. With the SEC’s Risk Alert on The Division of Examinations’ Review of ESG Investing and the most recent 2022 SEC Examination Priorities Report, understanding key compliance considerations to protect your Firm is vital. If your Firm provides these products and financial services, we have provided some key tips and compliance considerations. What is ESG Investing: ESG investing is a term that has many different meanings and may go by different names such as sustainable investing, socially responsible investing, and impact investing. Read more about ESG Investing[…]

Amendments to FINRA Rules for Security-Based Swaps

Posted on March 4, 2022 by admin

In an effort to clarify the rules regarding security-based swaps (SBS), FINRA has adopted amendments to rules 0180, 4120, and 4220. FINRA had previously adopted temporary relief from the application of most FINRA rules to SBS (Rule 0180), in tandem with temporary exemptive orders issued by the SEC relating to the definition of SBS as securities, as well as an interim pilot program with respect to margin requirements for transactions in CDS held in an account at a member (Rule 4240). These rules expire on February 6, 2022, and April 6, 2022, respectively. Amendments to Rule 0180 FINRA has adopted Read more about Amendments to FINRA Rules for Security-Based Swaps[…]

SEC Rule 17f-2: Fingerprinting Of Securities Industry Personnel

Posted on February 25, 2022 by admin

Under SEC Rule 17F-2, every member of a national securities exchange, broker, dealer, registered transfer agent and registered clearing agency, and national securities association (as well as others), shall require that each of its partners, directors, officers, and employees be fingerprinted and submit appropriate and complete fingerprint cards to FINRA. FINRA then transmits these fingerprints and identifying information to the FBI to identify and process, consistent with protocols and requirements established by the Attorney General. Who is Required to be Fingerprinted? SEC Rule 17f-2 requires that the following associated persons be fingerprinted: Persons applying for registration. A fingerprint card must Read more about SEC Rule 17f-2: Fingerprinting Of Securities Industry Personnel[…]

Reporting And Inquiry for Lost, Counterfeit, Missing, and Stolen Securities

Posted on February 18, 2022February 18, 2022 by admin

SEC Rule 17f-1 calls for the SEC or its designee, currently the Securities Information Center (SIC), to maintain records of lost, counterfeit, missing, or stolen securities. This rule was created in an effort to reduce trafficking in lost, stolen, missing, and counterfeit securities. The database of securities maintained by the SIC can only be accessed by registered BDs and other financial institutions to ascertain if securities that have come into their possession have been reported as lost, stolen, missing, or counterfeit. No Criminal Action Suspected Upon discovery of the likely loss of a security, if no criminal action is suspected, Read more about Reporting And Inquiry for Lost, Counterfeit, Missing, and Stolen Securities[…]