In its March 2021 Regulatory Notice 21-10, FINRA announced that it has updated the form that FINRA members use to file offering documents and related information regarding their participation in private placements. See FINRA...more
The Financial Regulatory Authority (FINRA) recently issued a detailed report on compliance issues noted in its examination program.
In this alert, we discuss FINRA’s observations relating to Rule 2232, which requires...more
The Financial Regulatory Authority (“FINRA”) recently issued a comprehensive report on compliance issues noted in its examination program (the “Report”). The Report is intended to assist broker-dealers in identifying and...more
In October 2020, the Financial Industry Regulatory Authority (FINRA) proposed a rule amendment that would expand its filing requirements relating to private placements. Under the proposal, FINRA would amend its Rules 5122...more
In July 2020, FINRA issued Regulatory Notice 20-21, which is designed to provide guidance to broker-dealers in connection with their creation and use of retail communications relating to private placements.
The notice...more
In this issue of Structured Thoughts, we discuss:
..European Commission consultation on EU benchmark regulation
..FINRA: Suitability and sales practices remain an issue
..SEC charges Switzerland-based dealer for selling...more
In this issue of Structured Thoughts, we discuss:
..FINRA sanctions for a broker for failing to reasonably supervise sales of complex securities.
..NASAA’s report warning about the risks of leveraged and/or inverse...more
In this issue of Structured Thoughts, we discuss:
..New Regulation Best Interest, and its impact on the structured products market.
..The SEC’ June 2019 request for comment on simplifying, harmonizing and improving the...more
SEC FINES BROKER-DEALER FOR UNSUITABLE SALES OF LEVERAGED ETNS -
In September 2018, the SEC fined a New York-based broker-dealer in connection with unsuitable sales of leveraged ETNs linked to the price of crude oil....more
On July 2, 2018, the State of Massachusetts announced that it was investigating 10 broker-dealers that have 15% or more of their agents with current disciplinary incidents and that offer private placements to individual...more
SEC FINES BROKER-DEALER FOR EARLY RESALES OF STRUCTURED NOTES -
On June 25, 2018, the SEC announced that a broker-dealer settled charges relating to inappropriate resales of structured notes. The SEC determined that the...more
In the third release comprising part of the package of proposed rules and forms related to broker-dealers’ and investment advisers’ standards of conduct, the Securities and Exchange Commission (the SEC or the “Commission”)...more
Background -
For many years, the distinction between investment advisers and broker-dealers was clear: investment advisers were counselors who were expected to provide advice that was in the best interest of their clients,...more
On April 20, 2018, FINRA issued proposed amendments to Rule 2111’s “quantitative suitability” provisions. According to FINRA, the proposal is designed to more effectively counter the problem of “churning,” or excessive...more
On March 19, 2018, FINRA updated its guidance on its recent amendments to Rule 2232. The new requirements, which are currently scheduled to take effect on May 14, 2018, apply to transactions with retail customers (not...more
FINRA 2018 EXAM PRIORITIES: SUITABILITY AND COMPLEX PRODUCTS REMAIN FRONT AND CENTER -
In January 2018, FINRA released its annual examination priorities letter.1 The letter addresses a variety of areas that are important...more
On February 15, 2018, the Enforcement Section of the Massachusetts Securities Division (the “Division”) of the Office of the Secretary of the Commonwealth charged a registered broker-dealer (the “Broker-Dealer”) that operated...more
2/16/2018
/ Best Interest Standard ,
Broker-Dealer ,
Cease and Desist ,
Compliance ,
Department of Labor (DOL) ,
Disgorgement ,
Enforcement Actions ,
Fiduciary Rule ,
Fines ,
Impartiality ,
Internal Controls ,
Retirement Plan ,
State Securities Regulators
In January 2018, FINRA issued guidance on the provisions of Rule 2165 and the amendments to Rule 4512, which were approved in February 2017. The new requirements are aimed at preventing the financial exploitation of seniors,...more
Until recently, broker-dealers operating in the United States weren’t subject to a fiduciary standard when dealing with their retail clients.
The passage of the Dodd-Frank Act in 2010 included a provision enabling the...more
In a December 20, 2017 press release, FINRA announced that, at its final Board of Governors meeting for 2017, it approved the filing of several proposed amendments to its rules.
The rule proposals will include the...more
In December 2017, FINRA issued a report highlighting several key findings from its recent examinations of broker-dealer members. ...more
On September 26, 2017, SEC Chairman Jay Clayton delivered to the U.S. Senate Committee on Banking, Housing and Urban Affairs his first testimony as Chairman. ...more
LIBOR: The End Game -
Since the announcement on July 27, 2017 by the UK Financial Conduct Authority (the FCA) that the LIBOR rate would be phased out after 2021, much has been written about the complications of switching...more
9/27/2017
/ Broker-Dealer ,
ETFs ,
EU ,
European Economic Area (EEA) ,
Financial Industry Regulatory Authority (FINRA) ,
Fraud ,
Key Information Document (KIDs) ,
Libor ,
NASAA ,
Prospectus Regulation (PR3) ,
Regulation M ,
Structured Financial Products
In August 2017, FINRA entered into a consent agreement with a Georgia-based broker-dealer arising from improper practices and procedures relating to its sales of leveraged ETFs. The sales included ETFs that were leveraged,...more
FINRA’s Proposed Amendments to the Corporate Financing Rules – Impact on Structured Notes -
In April 2017, FINRA released a set of significant proposed amendments to its Rule 5110, known as the “Corporate Financing Rule.” ...more
5/1/2017
/ Broker-Dealer ,
Corporate Financing ,
Disclosure Requirements ,
Filing Requirements ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Hedging ,
Hotlines ,
Investors ,
Proposed Amendments ,
Structured Financial Products ,
Underwriting