Blog - Page 4 of 5 - Ryan P. Smith Law, PLC

Cowboy Curly, Mitch and Work-Life Balance

Posted on May 26, 2022

All of my commentary to this point has concerned matters involving broker-dealers, registered investment advisers and their associates. It is what I do. I help them spend more time building out their businesses by addressing their legal and compliance issues with clear, detailed advice.

Today, though, I would like...

FINRA’s Expectations (Reg Notice 22-11)

Posted on May 16, 2022

FINRA issued Regulatory Notice 22-11 in April to remind broker-dealers of their obligations in the sale of alternative mutual funds to their clients. FINRA explained that it published this guidance because of a number of recent enforcement actions it took against firms selling this product. However, upon closer inspection, 22-11 is simply FINRA’s...

EXAMS’ Risk Alert on Advisers Act Section 204A and the Code of Ethics Rule

Posted on May 5, 2022

The SEC’s Division of Examinations (“EXAMS”) posted its observations concerning registered investment advisers’ compliance with Section 204A of the Investment Advisers Act of 1940 and Rule 204A-1 (also known as the “Code of Ethics Rule”) in...

FINRA’s April 2022 Disciplinary and Other Actions

Posted on April 30, 2022

As noted recently, FINRA’s monthly publication of its Disciplinary and Other FINRA Actions offers various insight and teaching moments. April’s lesson for the broker-dealer industry: Ignore FINRA at your peril. FINRA Bars for Reps for Failing to Respond Accurately . . . or At All FINRA barred 6 individuals for violations of...

Expungement of Complaints from the CRD

Posted on April 29, 2022

Anyone Can Indict a Ham Sandwich – or Put a Complaint on an AP’s Record [1] From where I sit, the reporting of a complaint against an AP is one of the more controversial aspects of the broker-dealer industry. This is chiefly because the standard for reporting a complaint is extremely low. . . Your Elementary...

Reporting to the Consolidated Audit Trail (CAT)

Posted on April 20, 2022

MENOs and MEORs and MEOFs, Oh My! – A High-Level Overview of CAT Reporting The Consolidated Audit Trail (CAT) is the biggest change – and many would offer, challenge – to regulatory reporting in the broker-dealer industry in some time. Perhaps ever. Accurate reporting requires a blend of regulatory expertise and technical skill...

FINRA’s March Disciplinary Actions

Posted on April 8, 2022

Industry participants know that FINRA’s monthly posting of its "Disciplinary and Other FINRA Actions" offers insight into its enforcement priorities. One can also say it offers various teaching moments. The March edition is no exception. Of interest to me was a Letter of Acceptance, Waiver and Consent (AWC) that FINRA accepted from a broker-dealer to...

Social Media Hygiene and Recordkeeping

Posted on April 6, 2022

Reporter Dalvin Brown advised that “deleting old social-media posts is good hygiene, no matter who you are.” See The Wall Street Journal, How to Delete Your Old Posts on Instagram, Facebook and Twitter (posted February 20, 2022). Agreed. Posting to social media can lead to unintended, and sometimes severe, consequences. However, industry practitioners are reminded...

So, You Want To Be a CCO?

Posted on March 25, 2022

In Regulatory Notice 22-10, FINRA offers the broker-dealer community guidance on when it will consider charging a Chief Compliance Officer under Rule 3110. Equally as important, FINRA articulates the factors that it may consider when deciding not to level such a charge. The clarity is helpful. And worth any CCO’s careful examination. FINRA...

The MQP

Posted on March 24, 2022

The Ides of March brought a meaningful change for the registered representative community – the launch of the Maintaining Qualifications Program, or MQP. As FINRA announced in Regulatory Notice 21-41, under the changes to Rule 1240(c), those who terminate any representative or principal registration category on or after March...