The Financial Industry Regulatory Authority, Inc. has issued Regulatory Notice 11-48 (the Notice), which seeks comment on proposed new FINRA Rule 4516 (the Rule). The proposed rule would require each carrying or clearing member firm to maintain and keep current certain records in one central location. The comment period expires December 9.
According to the Notice, FINRA proposed the Rule because it is essential that regulators be able to take prompt action with respect to customer accounts of a carrying or clearing member firm that can no longer continue to operate due to financial or operational problems. To that end, FINRA believes it is critical that a carrying or clearing member firm maintain and keep current certain documents and information at a specially designated area in the firm’s principal office that would be immediately available to representatives of FINRA, the Securities and Exchange Commission, and Securities Investor Protection Corporation...
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