2025 is here, and so is FINRA’s 2025 Annual Regulatory Oversight Report (Report). On January 28, 2025, FINRA published the Report, which provides firms with insight into FINRA’s findings from recent observations and...more
2/26/2025
/ Artificial Intelligence ,
Broker-Dealer ,
Cybersecurity ,
Data Security ,
Fraud ,
Investment ,
Regulation Best Interest ,
Regulatory Oversight ,
Risk Management ,
Scams ,
Securities Regulation ,
Technology ,
Third-Party Risk
On May 15, 2024, the SEC announced it would make amendments to Regulation S-P (Reg S-P). This will be the first amendment to the regulation since its adoption 24 years ago in 2000. The regulation focuses on how institutions...more
FINRA, as part of its targeted exam of member firms’ social media practices for gaining new customers, recently announced an $850,000 fine against M1 Finance LLC (“M1 Finance”) stemming from promotional social media posts...more
4/24/2024
/ Broker-Dealer ,
Disclosure Requirements ,
Financial Industry Regulatory Authority (FINRA) ,
Influencers ,
Investment Adviser ,
Investment Firms ,
Policies and Procedures ,
Regulatory Requirements ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Social Media
We are probably still years away from Wall Street being overrun by actual robots. Nonetheless, artificial intelligence (AI) tools are divisively integrating into all aspects of society—from the classroom to the courtroom....more
8/9/2023
/ Analytics ,
Artificial Intelligence ,
Broker-Dealer ,
Comment Period ,
Conflicts of Interest ,
Investment ,
Policies and Procedures ,
Proposed Regulation ,
Public Comment ,
Regulatory Agenda ,
Risk Management ,
Robo-Advisors ,
Robotics ,
Securities and Exchange Commission (SEC) ,
Securities Traders ,
Technology Sector
The SEC’s Office of Information and Regulatory Affairs recently released the Spring 2023 Unified Agenda of Regulatory and Deregulatory Actions (the Agenda). The word salad of a title hints at the fact the SEC is considering a...more
6/27/2023
/ Analytics ,
Artificial Intelligence ,
Broker-Dealer ,
Cybersecurity ,
Investment Companies ,
Machine Learning ,
Outsourcing ,
Private Funds ,
Registration Requirement ,
Regulatory Agenda ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934 ,
Technology
Hermione Granger (yes, from Harry Potter) is famously attributed with the following quote: “I’m going to bed before either of you come up with another clever idea to get us killed. Or worse, expelled.” Unfortunately,...more
The Broker-Dealer Regulation & Litigation Digest is a periodic compilation of the most read blog posts published on the Broker-Dealer Law Blog during the last few months. Here you can catch up on what you missed or re-read...more
Since Regulation Best Interest’s (Reg BI) June 30, 2020 compliance date, the Division of Examinations of the Securities and Exchange Commissions (the Division) has been busy implementing examinations of broker-dealers to...more
3/10/2023
/ Broker-Dealer ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
Policies and Procedures ,
Regulation Best Interest ,
Regulation BI ,
Rollover Equity ,
Securities and Exchange Commission (SEC) ,
Standard of Care
Yes, (somehow) it is that time of year again. FINRA recently released its 2023 Report on its Examination and Risk Monitoring Program (the “Report”). As is typical (and this blog has well-covered), it contains a mix of old and...more
2/2/2023
/ Arbitration ,
Broker-Dealer ,
Consolidated Audit Trail ,
Cryptocurrency ,
Enforcement ,
Financial Crimes ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Investors ,
Mobile Apps ,
Regulation Best Interest ,
Regulation BI ,
Risk Management ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC) ,
Standard of Care
Riding the coattails of recent news, FINRA announced on November 14th that it is conducting a targeted exam of firm practices regarding retail communications concerning “Crypto Asset” products and services....more
On September 27, 2022, the SEC announced that it had sanctioned 15 Broker-Dealers and one affiliated RIA for widespread recordkeeping violations of Section 17(a)(1) of the Exchange Act and Rule 17a-4(b)(4) thereunder...more
10/4/2022
/ Broker-Dealer ,
Cease and Desist ,
Compliance ,
Corporate Misconduct ,
Economic Sanctions ,
Financial Industry Regulatory Authority (FINRA) ,
Penalties ,
Policies and Procedures ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934
We have made it a point previously in this blog to track developments of the SEC’s Regulation Best Interest (Reg BI), even speculating more aggressive enforcement actions could be coming due to certain Reg BI deficiency...more
In recent years there has been a spate of legislation and rules passed to protect senior investors. Similarly, observers of FINRA’s and the SEC’s annual priorities will, of course, have noticed both bodies’ inclusion of elder...more
5/9/2022
/ Broker-Dealer ,
Elder Abuse ,
Elder Issues ,
Exploitation ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Investment Adviser ,
Investors ,
New Legislation ,
New Regulations ,
Securities and Exchange Commission (SEC) ,
Senior Safe Act
Benjamin Franklin once said “don’t put off until tomorrow what you can do today.” While that is always prudent advice, the Department of Labor (DOL) believes it’s best to grant an extension to investment advisors and...more
12/1/2021
/ 401k ,
Broker-Dealer ,
Department of Labor (DOL) ,
Employee Retirement Income Security Act (ERISA) ,
Fiduciary Duty ,
Fiduciary Rule ,
Financial Institutions ,
Individual Retirement Account (IRA) ,
Investment Adviser ,
IRA Rollovers ,
Prohibited Transactions ,
PTEs ,
Retirement Plan ,
Standard of Conduct
As the countdown to the June 30, 2020, date for compliance with Reg BI inches forward, FINRA and the SEC are providing a potpourri of support and information to help firms ensure compliance.
FINRA EFFORTS: FINRA’s...more
12/19/2019
/ Best Interest Standard ,
Broker-Dealer ,
Conflicts of Interest ,
Financial Industry Regulatory Authority (FINRA) ,
Form CRS ,
Investment Adviser ,
Investment Firms ,
Investment Management ,
Regulation Best Interest ,
Retail Investors ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Standard of Conduct ,
Stress Tests
Justice Brandeis once famously said that sunlight is the best disinfectant. Perhaps, but in FINRA’s purview, settlements might be better. Along these lines, FINRA recently announced that it has reached final settlements in...more
On the heels of the SEC’s recent approval of the “Reg BI Package,” on June 26, 2019 the U.S. House of Representatives passed a bill that would prevent enforcement of Reg BI. Specifically, Rep. Maxine Waters included a last...more