SEC and FINRA Release 2021 Examination Priorities
3/15/21
By: Chad Weaver and Tyler Jacobs
On March 3rd, the SEC Division of Examinations announced their 2021 examination priorities. Earlier this year, on February 2nd, FINRA released a report of Examinations and Risk Monitoring to provide …
FINRA Amends Rules to Incentivize Timely Payment of Arbitration Awards
6/17/20
By: Kathleen Cusack and Kirsten Patzer
On May 21, 2020, the Financial Industry Regulatory Authority (FINRA) announced that effective September 14, 2020, its Membership Application Program (MAP) rules will be amended to further incentivize the timely payment of arbitration awards. …
FINRA Issues Guidance on Remote Work Including Continued Warning for Cyber Threats
6/15/20
By: Kathleen Cusack and Kirsten Patzer
Although all 50 states have begun the process of reopening, business spaces have not yet returned to full capacity and many people continue to work remotely. On May 28, 2020, the Financial Industry Regulatory …
FINRA In-Person Hearings Further Postponed Until July 31
5/20/20
By: Kathleen Cusack and Kirsten Patzer
On Friday, May 15, 2020, amidst continued concern over the potential spread of COVID-19, the Financial Industry Regulatory Authority (FINRA) postponed all in-person arbitration and mediation proceedings until July 31, 2020. FINRA initially postponed …
Business Continuity Plans in the Age of Coronavirus
3/23/20
By: Jennifer Weatherup
As the Coronavirus, or COVID-19, has caused unprecedented disruptions, including a precipitous decline in the stock market, it is increasingly important for broker-dealers to prepare plans which will allow them to fulfill their responsibilities to customers and …
Beware of FINRA's Increased Focus on Non-Registered, Associated Persons
8/9/19
By: Elizabeth Lowery
On July 29, 2019, FINRA announced that Citigroup Global Markets, Inc. was fined $1.25 million for failing to conduct timely or adequate background checks on approximately 10,400 non-registered associated persons spanning a seven-year period from 2010 to …
6/17/19
By: Joseph Suarez
On June 5, 2019, the U.S. Securities and Exchange Commission (“SEC”) approved its Best Interest Rule (the “Rule”) package requiring broker-dealers, and investment advisors, to act in their retail clients’ “best interests.” The SEC states the Rule, …
Protecting Seniors From Investment Exploitation – One Year Later
6/3/19
By: Ryan Baggs
One year after the passage of the Senior Safe Act (the “Act”) the SEC, FINRA, and NASAA continue to emphasize the importance of “covered financial institutions” (“CFIs” or “CFI”) providing adequate training to all relevant employees for …
FINRA Seeks To Simplify Non-Party Discovery
4/9/19
By: Greg Fayard
In January 2019, the Financial Industry Regulatory Authority (FINRA) proposed changes to its rules to give non-parties more time to respond to discovery requests and witness orders from arbitration panels. Currently, non-parties only have 10 calendar days …
Latest FINRA Rules to Regulate Expungement Actions
2/19/19
By: Margot Parker
FINRA recently announced its approval of enhanced training and guidance for arbitrators hearing expungement requests, an issue under increasing scrutiny as over 90% of such actions are currently granted. The proposal is now under review by the …
FINRA Increases Penalties For Brokers’ Bad Behavior
5/8/18
By: Ted Peters
In further response to mounting pressure for securities regulators to exert greater control over problem brokers, the Financial Industry Regulatory Authority (“FINRA”) released Regulatory Notice 18-17 on May 2, 2018. FINRA has long maintained a “rulebook” of …
New FINRA Proposals for High Risk Brokers
5/4/18
By: Theodore C. Peters
On April 30, 2018, FINRA published Regulatory Notice 18-16, captioned “High-Risk Brokers,” which seeks comment on proposed rule amendments that would place further restrictions on not only high-risk brokers, but also the member firms that …