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.
FINRA opened 2015 with a lengthy and ambitious agenda of regulatory priorities. This year’s Regulatory and Examination Priorities Letter is much longer than those issued the last two years, and repeats many of those years’ priorities, while adding additional products and practices.
The Financial Industry Regulatory Authority (“FINRA”) released its annual regulatory and exam priorities letter for 2015 (the “Letter”). As it has done for the past ten years, FINRA outlined the areas in which its examiners will pay particular attention with respect to its inspections this year.
On November 18, 2014, the Securities and Exchange Commission (SEC) issued Release No. 34-73622 requesting comment on amendments to NASD Rule 2711 governing equity research analysts and research reports.
On November 18, 2014, the Securities and Exchange Commission (SEC) issued Release No. 34-73623 requesting comment on proposed Financial Industry Regulatory Authority (FINRA) Rule 2242 addressing conflicts of interest and disclosure obligations relating to the publication and distribution of debt research reports.