Tag: Exception Reports

Merrill Mutual Fund Enforcement Lessons Learned

Merrill Mutual Fund Enforcement Lessons Learned

Posted on by admin

FINRA (Financial Industry Regulatory Authority) announced on June 2, 2022 that it ordered Merrill Lynch, Pierce, Fenner & Smith, Inc., to pay 15.2 million in restitution and interest to thousands of customers who purchased Class C mutual fund shares when Class A shares were available at a substantially lower cost. FINRA news releases are useful tools to look for trends in violations and other sanctions. These trends can assist you in identifying weak areas in your Firm’s compliance programs or surveillance. Below is a summary of the Merrill order, as well as key takeaways. Click here for the corresponding news Read more about Merrill Mutual Fund Enforcement Lessons Learned[…]

Carrying Agreements

Carrying Agreements

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Most broker-dealers rely on another member firm to provide clearing, custody, and execution services. Where needed, a carrying firm may provide prime brokerage, exception reports, stock lending and borrowing, financing margin, risk monitoring, direct market access (DMA), and much more. In short, an introducing firm outsources many important jobs. By allowing other firms to perform these critical functions, a fully disclosed introducing firm can focus on its core activities while its clearing firm may look to providing its clients with good service, economies of scale, and expertise in technology. All carrying agreements between an introducing firm and its carrying agent Read more about Carrying Agreements[…]

Compliance Program

Tools to Conquer Compliance Program Challenges

Posted on by SCM Communications

Compliance responsibilities grow with every passing year. New regulatory mandates, examination priorities, trends in regulatory enforcements, changes in business, personnel changes, adding new business lines. These are only a few of the many considerations of which compliance professionals must be aware in order to run an effective compliance program amidst the ever-evolving landscape. Read More…