FINRA’s Proposed Change to Rules 5122 and 5123

FINRA’s Proposed Change to Rules 5122 and 5123

On October 28, 2020, FINRA filed a proposed rule change to amend Rules 5122 (Private Placements of Securities Issued by Members) and 5123 (Private Placements of Securities) that would require members to file retail communications concerning Private Placement offerings. Previously, Rules 5122 and 5123 required all offering documents to be filed with FINRA. However, they weren’t specific enough to include all documents that should have been considered offering documents, such as retail communications.

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Form CRS Updates in 2020 (Part 1)

Form CRS Updates in 2020 (Part 1)

On October 8th, the SEC release another update to the FAQ for Form CRS, this time focusing on the Disciplinary History section. After so many updates, it is a good idea to go back through to refresh your memory.

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FINRA Report Filing

FINRA Report Filing Due Dates for 2021

FINRA recently released a notice about 2021 and first quarter of 2022 FINRA Report Filing Due Dates to assist members in their financial reporting obligations for Annual Report, Financial and Operational Combined Uniform Single (FOCUS), Form Custody, and supplemental FOCUS Report filings.

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FINRA Rule 3210

FINRA Rule 3210: Accounts At Other Financial Institutions

On April 3, 2017, FINRA Rule 3210 for Accounts At Other Broker-Dealers and Financial Institutions officially replaced NASD Rule 3050, Transactions for or by Associated Persons. In summary, FINRA Rule 3210 requires prior notification by an associated person to their member firm before they establish an account at another financial institution. Accounts include any securities transactions in which the Associated Person has a financial interest or with respect to which such person had discretionary authority. Read More…

Supervisory Control

Supervisory Control: The Basics of Rule 3120

Most broker-dealers are aware of their annual requirement to test and document their firm’s compliance program. But, the question remains if firms are meeting the full requirements of the rule. Below are the basics of the former NASD Rule 3012, now FINRA Rule 3120, for establishing and maintaining a system of supervisory control. Read More…

FINRA CMA

FINRA Continuing Membership Application (“CMA”)

When a broker-dealer implements a significant change in the strategies and activities of the business, FINRA requires firms to file a continuing membership application (“CMA”) to modify its membership agreement. Through this requirement, FINRA seeks to help protect investors by ensuring that firms reflect these changes in their policies, procedures, and supervisory and compliance systems.

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