News & Analysis as of

Recordkeeping Requirements Financial Industry Regulatory Authority (FINRA)

Eversheds Sutherland (US) LLP

No good deed goes unpunished: FINRA punishes firm for failing to supervise use of approved off-channel communications

FINRA recently sanctioned, through a Letter of Acceptance, Waiver and Consent (AWC), a broker-dealer for off-channel communications—not because financial professionals texted or used instant messaging when they weren’t...more

King & Spalding

FINRA Proposes Amendments to The Gifts Rule

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On June 11, 2025, FINRA proposed amendments to Rule 3220 (Influencing or Rewarding Employees of Others) (the “Gifts Rule”) that would raise the annual gift limit per recipient to $250 from $100, as well as codifying...more

BakerHostetler

DSIR Deeper Dive: Information Governance - Communication Retention Challenges and a Return-to-Office Reaction

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Let’s say, once upon a time, you worked from home during the pandemic. If so, did you use a variety of communication methods (perhaps switching among different platforms, never sure which camera or microphone would be...more

Eversheds Sutherland (US) LLP

FINRA proposes revisions to SEC-mandated heightened supervision plans for off-channel communications

On May 8, the Financial Industry Regulatory Authority (FINRA) published a blog announcing that it intends to modify the heightened supervision plans (HSPs) imposed as part of certain broker-dealers’ settlements with the US...more

Bracewell LLP

FINRA Facts and Trends: May 2025

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Welcome to the latest issue of Bracewell’s FINRA Facts and Trends, a monthly newsletter devoted to condensing and digesting recent FINRA developments in the areas of enforcement, regulation and dispute resolution. We dedicate...more

Pagefreezer

Social Media vs. Compliance — The Major Marketing Problem Stumping Financial Services

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These days, you'd be hard-pressed to find an business that isn't advertising on social media. But when it comes to financial service providers, social media marketing can become a double-edged sword, or worse a compliance...more

Orrick, Herrington & Sutcliffe LLP

FINRA AWC details reporting failures

On January 27, FINRA accepted a Letter of Acceptance, Waiver, and Consent (AWC) addressing alleged violations committed by the respondent, retail market maker offering execution services to broker-dealers and member firm...more

Rumberger | Kirk

FINRA Reminds Financial Firms How AI Use Poses Significant Risks

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These days, artificial intelligence is everywhere we look, and the financial services industry is no different. As AI use increases, regulatory bodies are updating their rules and guidelines detailing how companies should and...more

Jackson Lewis P.C.

Hybrid Workplaces + Regulatory Obligations: What FINRA Members Need to Know About the RSL Rule and Remote Inspections

Jackson Lewis P.C. on

As of June 1, 2024, FINRA member firms have been able to identify as a “Residential Supervisory Location” (RSL) a “private residence from which an associated person engages in supervisory functions,” so long as certain...more

Cozen O'Connor

Navigating the Future: Key Takeaways & Insights from the 2024 Securities Enforcement Forum Central

Cozen O'Connor on

One of the concerns following the Supreme Court’s ruling in SEC v. Jarkesy was that other agencies may face similar collateral attacks to its administrative proceedings. While the full impact of Jarkesy remains an open...more

Davis Wright Tremaine LLP

Broker-Dealer Disciplinary Actions: Takeaways From 2024 (So Far)

The U.S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Exchanges were active across a host of regulatory issues impacting fintech companies and broker-dealers during...more

Pagefreezer

5 Huge Reasons Banks Need to Archive Their Websites & Social Media Accounts

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The digital revolution has transformed the banking industry. As financial services and associated communications move online, it is more important than ever for institutions to manage and control their online presence....more

BCLP

Regulators Impose Extraordinary Fine Amounts in Recent Off-Channel Communications Enforcement Actions

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The Securities and Exchange Commission (“SEC”) and the Financial Industry Regulatory Authority (“FINRA”) have, in two separate recent settled enforcement actions involving off-channel communications (“OCC”), imposed fine...more

SEC Compliance Consultants, Inc. (SEC³)

Compliance Roundup for April 5, 2024

Compliance Update for the week Ending April 5, 2024 - For our clients and compliance colleagues, this weekly update will give you a quick look at the latest regulatory developments. Enjoy!...more

K&L Gates LLP

SEC Expands "Dealer" Definition to Capture Liquidity Providers

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Introduction - On 6 February 2024, the US Securities and Exchange Commission (SEC) voted 3-2 to adopt two new rules that significantly expand the definitions of a “dealer” and “government securities dealer” in Sections...more

Skadden, Arps, Slate, Meagher & Flom LLP

Investment Management Update - November 2023

...SEC Adopts Amendments to Fund Names Rule - On September 20, 2023, the U.S. Securities and Exchange Commission (SEC) adopted amendments to Rule 35d-1 under the Investment Company Act of 1940 (the Fund Names Rule) as well...more

Cadwalader, Wickersham & Taft LLP

SEC Exempts Brokers and Dealers from Rule 15c2-11 Review and Recordkeeping Requirements for Quotations on 144A Fixed Income...

On October 30, 2023, the Securities and Exchange Commission issued an order (the “Order”) that grants exemptive relief under Rule 15c2-11 under the Securities Exchange Act of 1934 to brokers and dealers that publish...more

Carlton Fields

Regulators Hit Jackpot: Off-Channel Communications

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Several years before announcing the first “off-channel” communications enforcement action, the SEC and FINRA cautioned broker-dealers and investment advisers about problematic record-keeping practices involving the use of...more

Hanzo

Why Marketing Compliance for Financial Services Is A Big Deal

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In today's fiercely competitive business landscape, financial services companies, like their counterparts in other industries, rely on advertising and digital marketing strategies to create brand recognition, promote their...more

Davis Wright Tremaine LLP

Broker Dealer Regulatory Digest - August 2023

The following newsletter provides a roundup summarizing enforcement actions, guidance, rulemakings, and other public statements taken by a federal and/or state financial services regulatory agency, specifically focusing on:...more

Marshall Dennehey

Arbitrator Finds No Extraordinary Circumstances Existed That Would Permit the Equitable Tolling of FINRA’s Six-Year Eligibility...

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In an action filed in 2022 involving allegations of breach of fiduciary duty, negligence and fraud related to certain unspecified securities, an arbitrator granted the respondent broker-dealer’s motion to dismiss pursuant to...more

Mintz

Don’t Text and Trade: Regulators Crack Down on the Use of Improper Communication Channels

Mintz on

Registered reps beware: your personal device or messaging account is not the right place to conduct your business affairs, and regulators have made clear that they will not look the other way. In particular, the Financial...more

Goodwin

FINRA Provides Update on Social Media Influencers, Customer Acquisition and Related Information Protection

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In February, FINRA provided an update (Update) concerning the targeted exam (Sweep) launched in September 2021 to review firms’ practices concerning customer acquisition through social media channels and the way firms share...more

Goodwin

Broker-Dealer Compliance With Revamped Recordkeeping Requirements Begins May 3, 2023; FINRA Publishes Chart of “Most Significant...

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The SEC recently amended Exchange Act Rule 17a-4 by adopting new recordkeeping requirements for broker-dealers. Most notably, the SEC will no longer require broker-dealers to maintain records in “write once, read many” or...more

Katten Muchin Rosenman LLP

Financial Markets and Funds Quick Take | Issue 8

SEC Advertising Rules – Client Resource Center - November 4 was the compliance date for the new rule governing advertising and solicitation activities by investment advisers. The new rule substantially revises decades old...more

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