Broker Dealer Advertising

Broker Dealer Advertising

Has your broker dealer investigated using advertising materials in order to attract new clients, promote a service that your broker dealer provides, or simply tried to establish your firm’s brand within the industry? Advertising is a great tool that can increase your broker dealer business opportunities, but it does come with rules and regulations. If you go to the Financial Industry Regulatory Authority ‘s (“FINRA”) website and search for “advertising” guidelines, your brain might possibly explode. It is overwhelming to say the least! There are so many rules set forth by FINRA and the Securities and Exchange Commission (“SEC”). Between Read more about Broker Dealer Advertising[…]

Communications surveillance

Communications Surveillance Challenges While Teleworking

As firms continue executing work from home policies, they should consider crucial factors related to potential challenges and changes needed to their communications surveillance program. As more employees are working on personal devices, spending more time on social media, and conducting business in this new reality, regulations on building a compliant communications program are even more important now.

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Supervision Relief Related to COVID-19 Pandemic

FINRA Rule 3110 Supervision requires a firm to establish and maintain a system to supervise the activities of its associated persons. Furthermore, the supervisory process seeks to achieve compliance with the applicable securities laws and regulations and FINRA rules.

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FINRA Rule 2210 and Social Networking Websites

FINRA Rule 2210 requires that firms retain records of communications that relate to their “business as such” under Rule 17a-4(b) of the Securities Exchange Act of 1934 (SEA).  Therefore, it is the content of the broker’s communication that determines whether it is regulated under Rule 2210.   However, how does the rule apply if the firm or its registered representatives are not the authors of the content?  What if the content is created by a third-party?  We will discuss how the Rule 2210 applies in such scenarios. Third-Party Sites As explained by FINRA, posts by customers or other third parties on Read more about FINRA Rule 2210 and Social Networking Websites[…]

Communications with the Public – Part II

[Continued from Communications with the Public – Part I]

Investment Analysis Tools

Pursuant to FINRA Rules 2210(c)(3)(C) and 2214(a), firms that intend to offer an investment analysis tool must file templates for written reports produced by, or retail communications concerning, the tool, within 10 business days of first use. Rule 2214 also requires firms to provide FINRA with access to the tool itself, and provide customers with specific disclosures when firms communicate about the tool, use the tool or provide written reports generated by the tool.

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Communications with the Public – Part I

In April 2014, FINRA began a review of its communications with the public rules to assess their effectiveness and efficiency. FINRA later published a report concluding that, while the rules have met their intended investor protection objectives, they could benefit from some updating to better align the investor protection benefits and the economic impacts. To this end, the SEC recently approved amendments to certain FINRA rules governing communications with the public effective January 9, 2017.  The amendments revise the filing requirements in FINRA Rule 2210 and FINRA Rule 2214 and the content and disclosure requirements in FINRA Rule 2213.  Below is a summary of some of these changes.

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