One of the things you’re not supposed to do if you’re in the securities business – or any business, really – is buy and sell securities on the basis of material, nonpublic information in breach of a duty not to do so.
FINRA announced this week that it is conducting a review of its member firms’ order-routing processes and procedures and the execution quality of customer orders in exchange-listed stocks.
On July 2, 2014, FINRA announced that it barred a former equity trader from the securities industry based on its finding that he violated Japanese insider trading law by trading in the securities of a Japanese company listed on the Tokyo Stock Exchange, resulting from a tip that the trader received indirectly from an insider in Japan.
In a filing made by the Financial Industry Regulatory Authority (FINRA) on June 20th with the SEC, FINRA withdrew a previously submitted rule proposal that would have required brokers to tell clients about recruitment incentives they receive in excess of $100,000.
In a first-impression decision, the U.S. District Court for the District of Nebraska recently ruled that an employee who disclosed information about potential securities law violations to FINRA may qualify as a “whistleblower” under Dodd-Frank, even though the employee did not provide any information to the SEC.
FINRA is seeking to increase investor awareness of BrokerCheck, its online investor tool for researching the professional backgrounds of firms and brokers. BrokerCheck is accessible to investors and all members of the public from the front page of FINRA’s own website.
Broker-dealers selling interests in IPOs need to have adequate supervisory systems to ensure that registered representatives do not make actual sales before the securities are registered, according to a settlement of a formal disciplinary proceeding announced by FINRA yesterday.
New FINRA Rule 3110 (effective December 1, 2014) sets out various written procedures and requirements for member firms. You should pay particular attention to these rules because they suggest those areas of focus in any upcoming examination.
Effective December 1, 2014, there will be new rules for broker-dealer supervision. With these changes, FINRA is placing more burdens on a firm’s supervisory system.
On March 19, 2014, the Securities and Exchange Commission approved several compliance rules proposed by the Financial Industry Regulatory Authority (FINRA).