Introducing Firm: Prompt Transmittal of Customer Checks
On July 29, 2016, the SEC issued a no-action letter concerning an introducing broker-dealer’s obligation to promptly transmit customer checks to a carrying firm. This no-action letter provides limited relief from the requirement to promptly transmit customer checks payable to the carrying firm by noon the next business day. This relief, which is subject to a number of conditions, applies only if the introducing firm’s purpose for holding the check is to complete its account opening process in compliance with FINRA rules. FINRA has stated that this no-action letter applies to every introducing firm. Background Introducing firms are typically exempt Read more about Introducing Firm: Prompt Transmittal of Customer Checks[…]