FINRA’s recent overhaul of its Sanction Guidelines is the largest and most significant in two, if not three, decades. It would be quite the understatement to say that the time had come for FINRA to make a much-needed change...more
In the last five years, the SEC observed a 70% increase in the value of private fund assets. More than 5,000 SEC-registered advisers currently manage approximately $18 trillion in private fund assets, according to the Risk...more
Key Takeaways:
..FINRA released its most recent Sanctions Guideline, effective immediately, on October 20, 2021. A link to that document can be found here.
..The key change in the 2021 Sanctions Guideline is a new...more
On November 9, 2021, the SEC released a Risk Alert from the Division of Examinations which provides observations from recent examinations into advisers that offer electronic investment advice...more
On October 26, 2021, the SEC released a Risk Alert from the Division of Examinations which provides observations from recent examinations of mutual funds, exchange-traded funds (“ETFs”) and investment advisers, including...more
Recap of FINRA Rule 1017(a)(7) -
If you recall from our May 11th alert, effective September 1, 2021, FINRA Rule 1017(a)(7) will require a member firm to file a CMA when a natural person seeks to become an owner, control...more
8/31/2021
/ Applications ,
Bad Actors ,
Banking Regulators ,
Banking Sector ,
Banks ,
Broker-Dealer ,
Compliance ,
Continuation Applications ,
Criminal Records ,
Financial Conduct Authority (FCA) ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
Members ,
New Regulations ,
Prudential Regulation Authority (PRA) ,
Registration Requirement
Key Takeaways:
..On August 13, 2021, FINRA issued Regulatory Notice 21-29 (“RN 21-29”) to remind member firms that they must establish and maintain an adequate supervisory system, including written supervisory procedures...more
8/18/2021
/ Books & Records ,
Broker-Dealer ,
Business Continuity Plans ,
Compliance ,
Corporate Governance ,
Cybersecurity ,
Data Breach ,
Data Security ,
Due Diligence ,
Financial Industry Regulatory Authority (FINRA) ,
Internal Controls ,
New Guidance ,
Outsourcing ,
Professional License ,
Risk Management ,
Supervision ,
Third-Party Service Provider
Key Takeaways:
..With pre-dispute arbitration agreements constantly under attack by PIABA and various federal legislators, FINRA recently issued Regulatory Notice 21-16 to address member firm agreements that extend too...more
For the past decade, anti-money laundering (“AML”) has been at the forefront of securities regulators’ priorities. Indeed, AML enforcement cases have resulted in some of the highest fines imposed by securities regulators,...more
6/7/2021
/ Anti-Money Laundering ,
Chief Compliance Officers ,
Compliance ,
Corporate Fines ,
Due Diligence ,
Enforcement ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Foreign Financial Institutions (FFI) ,
Internal Controls ,
Regulatory Violations ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC) ,
Suspicious Activity Reports (SARs)
Key Takeaways:
..According to FINRA, the number of reported instances involving broker-dealer fraudulent account takeovers (ATO) and related theft is on the rise.
..As set forth in recently released FINRA Regulatory...more
5/27/2021
/ Authentication ,
Best Practices ,
Broker-Dealer ,
Compliance ,
Data Protection ,
Financial Industry Regulatory Authority (FINRA) ,
Fraud ,
Identity Theft ,
Mobile Banking ,
Online Banking ,
Personal Information ,
Popular ,
Regulatory Requirements ,
Risk Management ,
Securities and Exchange Commission (SEC) ,
Sensitive Personal Information
Key Takeaways:
..After years of warning firms of the need for enhanced diligence in retaining or hiring brokers with a significant history of misconduct, FINRA has adopted new rules to address such brokers.
..As set...more
5/19/2021
/ Applications ,
Broker-Dealer ,
Brokers ,
Compliance ,
Criminal Records ,
Financial Industry Regulatory Authority (FINRA) ,
New Regulations ,
New Rules ,
Regulatory Oversight ,
Regulatory Requirements ,
SEC Examination Priorities ,
Securities and Exchange Commission (SEC)