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A general securities representative settled Financial Industry Regulatory Authority ('FINRA') charges for advising customers to purchase Leveraged and Inverse Exchange Traded Funds ('LIETFs') without understanding the specific risks and unique [...]

A FINRA proposal to extend exemptions to certain small broker-dealers from the Order Audit Trail System ('OATS') was published in the Federal Register. As previously covered, FINRA proposed a three-year [...]

FINRA proposed amendments to Rule 5130 ('Restrictions on the Purchase and Sale of Initial Equity Public Offerings') and Rule 5131 ('New Issue Allocations and Distributions'). The proposed amendments would exempt [...]

The Financial Industry Regulatory Authority, Inc. ('FINRA') recently issued a Trade Reporting Notice1 to remind firms they must report any transaction in a 'TRACE-Eligible Security' unless an exception applies. A [...]

Last week, the Staffs of the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) (collectively, the Staffs) released a Joint Statement concerning the application of the [...]

FINRA staff clarified that a capital acquisition broker ('CAB') may, under certain conditions, accept equity securities issued by privately held companies as compensation for its services. In an interpretive letter, [...]

On April 5, 2019, FINRA provided guidance on customer communications related to departing registered representatives. The full text of the Regulatory Notice can be found here: FINRA Regulatory Notice. Member [...]

FINRA consolidated criteria for designation of participants in FINRA's Business Continuity/Disaster Recovery Testing ('BC/DR Testing') under Regulation Systems Compliance and Integrity (Regulation SCI). FINRA Rule 4380 authorizes FINRA to designate [...]

FINRA filed for immediate effectiveness a proposal to extend until October 18, 2019 a pilot program concerning FINRA Rule 11892 ('Clearly Erroneous Transactions in Exchange-Listed Securities'). The content of this [...]

FINRA issued a notice informing member firms that the fee rate for certain securities transactions on exchanges and in the OTC markets will increase from $13 to $20.70 per million [...]

The SEC's Office of Compliance Inspections and Examinations (OCIE) released its examination priorities for 2019 in order to promote the transparency of its investigation program. OCIE grouped its examination priorities [...]

On January 22, 2019, the Financial Industry Regulatory Authority, Inc. ('FINRA') released its annual priorities letter highlighting its regulatory program's points of emphasis for the coming year. The most immediately [...]

The Financial Industry Regulatory Authority (FINRA) has issued its 'Report on Selected Cybersecurity Practices - 2018' to provide further guidance to broker-dealer firms in developing and improving their cybersecurity programs. [...]

FINRA issued a proposal to permit alternative trading systems ('ATSs') and broker-dealer subscribers to ATSs to report transactions in U.S. Treasuries executed on ATSs on a 'partially disaggregated' basis until [...]

FINRA's Office of the Chief Economist ('OCE') found that brokers that route orders to affiliated alternative trading systems ('ATSs') at high rates obtain lower fill rates. In a working paper, [...]

FINRA launched a new self-reporting initiative to promote firm compliance with suitability requirements related to transactions in 529 savings plans.FINRA stated that it is establishing a 529 Plan Share Class [...]

The Securities and Exchange Commission's Office of Compliance Inspections and Examinations (OCIE) has issued its examination priorities for 2019. In it, OCIE points out that its examination program covers some [...]

A broker-dealer agreed to pay $10 million to settle FINRA charges for failing to establish and enforce an anti-money laundering ('AML') program that complies with the Bank Secrecy Act and [...]

FINRA highlighted key areas in which broker-dealers failed to establish and maintain adequate supervisory controls and compliance programs.In a Report on Examination Findings, FINRA advised broker-dealers to:establish adequate supervisory systems [...]

FINRA provided guidance on whether dates that securities markets unexpectedly close for business should be considered as either a regular business day or non-business day for purposes of broker-dealer financial, [...]

FINRA will revise the Central Registration Depository System ('CRD') to reflect the implementation of FINRA's restructured qualification examination program and consolidated registration rules. The changes to the CRD will be [...]

FINRA reminded firms to be mindful of compliance requirements when initiating a quote in an OTC security and filing a Form 211. FINRA Rule 6432 requires firms to file a [...]

FINRA reminded firms of trade reporting requirements when effecting OTC trades in equity securities on a 'net basis.' FINRA expressed concern that some firms might be using net basis trading [...]

FINRA created a new Securities Industry Essentials ('SIE') examination and revised several of its representative-level qualification examinations. In addition, FINRA set or modified various examination fees. In a Regulatory Notice, [...]

Introduction In October 2017, the Financial Industry Regulatory Authority (FINRA) announced, through Regulatory Notice 17-30 (the 'Notice'),1 that the U.S. Securities and Exchange Commission (SEC) approved a proposed rule change, [...]

The SEC granted a proposal by FINRA to extend the effective date of amendments to Rule 4210 that establish margin requirements for 'to-be-announced' or 'TBA' transactions and other forward-settling agency [...]

FINRA amended its anti-money laundering ('AML') policy to specifically require ongoing customer due diligence. These amendments will be implemented, along with comparable requirements under Customer Due Diligence Requirements for Financial [...]

FINRA is seeking comments on a review of FINRA Rule 4311 to determine whether it meets the intended investor-protection objectives and is 'reasonably efficient' in practice. FINRA Rule 4311 governs [...]

FINRA released a podcast summary of FINRA news, notices and resources from June 2017. The summary included the following FINRA notices: Regulatory Notice 17-22, which reminded firms that rule changes [...]

In April, FINRA issued Regulatory Notice 17-18, which reiterates previous rules and provides additional guidance regarding the application of several key rules governing communications with the public to digital communications. [...]

For the first time since 2004, FINRA has proposed major amendments to its requirements that govern the terms of the underwriting arrangements for most public offerings of securities and mandate [...]

FINRA filed a proposed rule change relating to the implementation date of rules requiring firms to use two new trade modifiers when reporting transactions in U.S. Treasury Securities to FINRA [...]

FINRA proposed changing Rule 7730 (Trade Reporting and Compliance Engine ('TRACE')) to reduce the delay period for its transaction-level data set offering from 18 months to 6 months. FINRA states [...]