January 9, 2018
On January 8, 2018, the Financial Industry Regulatory Authority (“FINRA”) published its 2018 Regulatory and Examination Priorities Letter to highlight areas of focus for FINRA’s upcoming examinations of registered broker-dealers. Significant areas of focus include financial technology innovations, including cybersecurity and supervision of transactions involving cryptocurrencies and initial coin offerings…
May 27, 2016
FINRA proposed amendments (SR-FINRA-2016-017) to the debt research rule (FINRA Rule 2242 – Debt Research Analysts and Debt Research Reports), which addresses conflicts of interest relating to the publication and distribution of debt research reports. The proposed amendments clarify the application of the rule in four respects: (1) The consent requirement for institutional debt research reports distributed to non-U.S. investors by non-U.S. affiliates of broker-dealers; (2) The consent requirement for institutional debt research reports distributed to specified persons for informational purposes unrelated to investing in debt securities; (3) The scope of the institutional debt research report exemption when distributing third-party debt research reports to eligible institutional investors; and (4) The disclosure requirements for debt research analysts in public appearances.
July 27, 2015
On July 17, 2015, FINRA submitted comments on the DOL’s April 14, 2015 proposals, which included amendments to the definition of “fiduciary,” a proposed best interest contract exemption, and a proposed exemption for principal transactions in certain debt securities. FINRA’s comments support the implementation of a best interest standard for…
July 20, 2015
FINRA Requests Comment on a Revised Proposal to Adopt a Consolidated FINRA Rule Regarding Discretionary Accounts and Transactions
On June 17, 2015, FINRA issued a request for comment on a revised proposal to adopt a new FINRA Rule 3260 for Discretionary Accounts and Transactions by Persons other Than the Customer. The accompanying Regulatory Notice 15-22 proposes to revise and consolidate NASD Rule 2510 and Incorporated NYSE Rule 408…
July 20, 2015
On June 19, 2015 FINRA issued an Information Notice on recent Distributed Denial of Service (“DDoS”) attacks by DD4BC, a cyber-criminal group. According to FINRA, DD4BC appears to be targeting financial services and broker-dealer firms that have an online presence. A DDoS attack will overwhelm a website or network with…
July 20, 2015
FINRA Fines Morgan Stanley and Scottrade with Failure to Supervise Transfer of Funds to Third-Party Accounts
On June 19, 2015, FINRA fined Morgan Stanley Smith Barney, LLC (“MSSB”) and Scottrade, Inc. (“Scottrade”) for failing to implement reasonable supervisory systems to monitor the transmittal of customer funds to third-party accounts. Pursuant to NASD Conduct Rules 3012 and 3010, member firms must maintain supervisory control policies sufficient to…
July 6, 2015
On April 16, 2015 FINRA announced proposed amendments and revisions to FINRA rules governing communications with the public. The proposed changes are part of a retrospective rule review launched by FINRA in April 2014 and are aimed at better aligning the investor protection benefits and economic impacts of these rules. The proposed amendments revise the filing requirements in FINRA Rules 2210 and 2214 and the content and disclosure requirements in FINRA Rule 2213.
June 12, 2015
On May 27, 2015, FINRA issued a request for comment on a concept proposal to restructure the current representative-level qualification examination program. In an effort to reduce the content overlap across the representative-level examinations and requirements for individuals in various segments of the industry, the new format would consist of a general knowledge examination (the Securities Industry Essentials Examination, or “SIE”) and an appropriate specialized examination to reflect each particular registered role.
June 5, 2015
The amendments to FINRA Rule 8311 clarify the scope of the rule on payments by member firms to persons subject to sanctions and eliminate duplicative provisions in NASD IM–2420–2.
June 5, 2015
FINRA Rule 2040 consolidates NYSE and NASD rules and NASD guidance on the payment of fees to unregistered persons. The new rule will become effective on August 24, 2015.