FINRA Archives - Page 3 of 3 - Ryan P. Smith Law, PLC

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...

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...

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...

Did FINRA Just Preview its 2023 Report?

Posted on March 22, 2022

In Regulatory Notice 22-08, FINRA reminds its membership of their obligations when selling certain products and invites comment on whether the current regulatory framework is sufficient given today's practices. Industry members should also note that at page 9 FINRA offers a few observations stemming from its current targeted exam of options accounts and...

Regulatory Notice 22-10

Posted on March 19, 2022

FINRA just posted guidance on potential Chief Compliance Officer liability stemming from Rule 3110 violations in Regulatory Notice 22-10. Read more: The MQP Defend Yourself EXAMS’ Risk Alert on Advisers Act Section 204A and the Code of Ethics Rule FINRA’s April 2022 Disciplinary and Other Actions Expungement of Complaints...

The 2022 Report on FINRA’s Examination and Risk Monitoring Program

Posted on March 19, 2022

The 2022 Report is Worthy Reading for Every Compliance Officer If you are in the broker-dealer industry, reading the 2022 Report on FINRA’s Examination and Risk Monitoring Program is worth your time and attention – especially if you are a supervisory principal or other compliance officer. FINRA not only highlights key issues in...