FINRA Rule 4530 – Recent Revisions Remind Broker-Dealers of the Importance of the New Requirement to Report Internal Findings of Violative Conduct

FINRA recently amended Rule 4530 (Reporting Requirements) to make required reporting by member firms of certain regulatory and disciplinary events less burdensome. Those relatively minor changes will be discussed below. But first, we will take this opportunity to remind firms of the most significant change to FINRA’s reporting requirements, made two years ago, when Rule 4530 was first enacted: the obligation of member firms to report internal conclusions of violations.

RULE 4530(b)’S REQUIREMENT TO REPORT INTERNAL CONCLUSIONS OF VIOLATIONS -

Effective July 1, 2011, the Securities and Exchange Commission (“SEC”) first approved FINRA’s new Rule 4530. Modeled largely after NASD Rule 3070, and NYSE Rule 351, Rule 4530 strengthened and clarified those rules’ requirements.

Please see full alert below for more information.

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Topics:  Audits, Discipline, Enforcement, FINRA, Reporting Requirements, SEC, Violative Conduct

Published In: Finance & Banking Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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