In a recent Acceptance, Waiver and Consent (“AWC”) a broker dealer was censured and fined for, among other things, the failure to conduct an adequate pre-hire investigation of a registered representative.
On March 25, 2015, the SEC proposed an amendment to Rule 15b9-1 that would require high-frequency trading firms to register with FINRA.
The SEC recently approved a FINRA proposal that will further restrict who can serve as “public” arbitrators. Under this new formulation, individuals who have worked in the securities industry and lawyers, including those who represent claimants, could not be considered “public” arbitrators for a period of time.
FINRA recently issued a Report on Cybersecurity Practices (“Report”), growing out of its targeted examination of firms last year.
FINRA recently censured and fined a broker-dealer $175,000.00 for failing to perform appropriate due diligence and supervision regarding private placements that the firm and its registered representatives offered.
On 3 February 2015, the Securities and Exchange Commission (the “SEC“) and the Financial Industry Regulatory Authority (“FINRA“) both issued cybersecurity reports to the US securities industry.
FINRA noted in its exam priorities that it will be focusing on firms’ compliance with the new supervision rules (FINRA Rules 3110, 3120, 3150 and 3170). These rules became effective on December 1, 2014.
If you are not asking that question, FINRA may as its recent $350,000 fine levied against a major brokerage house indicates. In that instance, FINRA found that the brokerage charged 20,000 customers a total of $2.4 million too much for certain transaction fees.