FINRA to Pick Up the Check on Unpaid Arbitration Awards?
3/8/18
By: Theodore C. Peters
As recently reported, unpaid FINRA arbitration awards is a growing problem. As FINRA has acknowledged, roughly one quarter of FINRA arbitration awards issued in 2016 went unpaid. If lawmakers have their way, FINRA itself …
Unpaid FINRA Awards May Result in Tighter Membership Rules Governing Brokers and Member Firms
2/16/18
By: Theodore C. Peters
On February 8, the Financial Industry Regulatory Authority (“FINRA”) released a discussion paper: FINRA Perspectives on Customer Recovery, which openly addressed the reality that roughly one quarter of FINRA arbitration awards issued in 2016 were …
FINRA’s Senior Protection Rules Now Effective
2/7/18
By: Theodore C. Peters
In 2007, FINRA issued Regulatory Notice 07-43, which served as a “reminder” that member firms and registered persons had a heightened obligation to senior investors. At that time, NASD Rule 2310 required that in recommending …
FINRA Seeks to Tighten Rules for Expungement of Customer Dispute Information
1/5/18
By: Theodore C. Peters
What once was a relatively simple process of removing outdated or false information on a registered person’s CRD (Central Registration Depository) record has become increasingly complicated (and expensive) over the years. Bit by bit, securities regulators …
New FINRA Rules to Bring Significant Changes to Qualification & Registration Process for Representatives and Principals
11/10/17
By: Patrick Y. Yoo
In October, 2017, the Securities and Exchange Commission approved a new set of Rules proposed by the Financial Industry Regulatory Authority (FINRA) that will go into effect October 1, 2018. The changes enacted by these Rules …
FINRA Tightens Expungement Requirements
10/12/17
By: Brett C. Safford
On September 25, 2017, the Financial Industry Regulatory Authority (FINRA) issued a “Notice to Arbitrators and Parties on Expanded Expungement Guidance” (hereafter, the “Notice”). The Notice continues the recent pattern of FINRA issuing rules …
FINRA Puts the Vice Grip On Confidentiality Provisions Customer Settlements and Customer Arbitrations and Litigation
12/10/14
By: John Goselin
FINRA’s Notice to Members 14-40 revises the regulator’s position on the permissible scope and nature of confidentiality provisions that broker-dealers can agree to relating to the discovery process in legal proceedings or as a term in …
FINRA Continues Push for Massive, All-Encompassing Securities Transaction Database
10/10/14
By: John H. Goselin, II
On September 30, 2014, FINRA issued NTM 14-37 which updated FINRA’s December 2013 proposal (see NTM 13-42 )to develop the Comprehensive Automated Risk Data System (CARDS). FINRA proposes to compile a database that tracks …
FINRA Clarifies “Know Your Customer” and “Suitability” Rules
9/17/12
By: Joyce Mocek
FINRA Rule 2090, effective July 9, 2012, has streamlined and replaced the former NASD Rule 405, the “Know Your Customer” standard. The new rule contains a “reasonable diligence” standard, compared to the old rule requirement of “use …