News & Analysis as of

Financial Industry Regulatory Authority (FINRA) NASD

Holland & Knight LLP

Twinkle-Twinkle Little SAR: SEC & FINRA Settle with Broker-Dealers and Registered Rep

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In a series of settlements announced this year, the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) penalized several broker-dealers for allegedly failing to file...more

BCLP

Call for Vacatur of Massachusetts’ Fiduciary Duty Standard for Broker/Dealers

BCLP on

On August 25, 2023, Justice Wendlandt of the Massachusetts Supreme Judicial Court issued a ruling in Robinhood Financial, LLC v. Secretary of the Commonwealth which upheld the legality of the fiduciary duty standard imposed...more

Fox Rothschild LLP

The 'New' M&A Broker-Dealer Exemption

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The bane of every start-up company is the never-ending quest to raise capital for its operations. Newly (and not so new) formed companies seemingly would do anything to raise funds. Over the course of many decades, these...more

UB Greensfelder LLP

FINRA Got It Right When It Comes To BCPs . . . But Not So Much On SARs

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FINRA is often accused (mostly rightfully, and certainly by me) of being a horse-is-already-out-of-the-barn sort of regulator, jumping on an issue only after the problem has already arisen and made it to the front page of the...more

UB Greensfelder LLP

SEC Not Only Reverses FINRA Disciplinary Action, But Provides Blueprint For Respondents To Use In Their Defense Of Similar Claims

UB Greensfelder LLP on

My friend and former colleague, Brian Rubin, publishes annually his analysis of FINRA Enforcement cases, spotting trends in terms of the number and types of matters it brings, the sanctions meted out, etc. It is an excellent...more

UB Greensfelder LLP

Cetera Pays $1 Million To Settle A Case That Should Have Been Moot . . . Except FINRA Failed To Act On A Wildly Popular Rule...

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Almost three years ago, in Reg Notice 18-08, FINRA wisely (but, nevertheless, still a bit late to the party) proposed to revise its own prior guidance regarding the troublesome intersection between outside business activities...more

Jackson Lewis P.C.

Financial Industry Regulatory Authority Arbitration Of Employment Disputes

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The Financial Industry Regulatory Authority, Inc. (FINRA) is an independent regulatory body, overseeing securities firms and their brokers and other registered personnel. Arbitration of employment disputes in the arbitration...more

UB Greensfelder LLP

The Rare Case Of The Unsuitable Strategy

UB Greensfelder LLP on

As everyone is likely well aware, one of the principal changes that happened when FINRA retired the old suitability rule – NASD Rule 2310 – and replaced it with shiny new FINRA Rule 2111 back in 2012 was the broadening of the...more

UB Greensfelder LLP

FINRA AML Settlements Drive Home The Point: When It Comes To Supervision, Actions Speak Louder Than Words

UB Greensfelder LLP on

The longer I do this, the more apparent it becomes just how little anything changes. Sure, some things do change, a little. Rule numbers may get updated, as Rule 2310 becomes Rule 2111. Things that once may have been done...more

BCLP

FINRA Re-Affirms Settled Principle That Transaction-Based Compensation Typically Cannot Be Made To Unregistered Persons Or...

BCLP on

FINRA’s final adjudicative body, the National Adjudicatory Counsel (“NAC”) recently issued a decision, affirming a Hearing Panel decision, sanctioning Silver Leaf Partners, LLC (“Silver Leaf”) for making improper payments to...more

UB Greensfelder LLP

When It Comes To Suitability Violations, There Is No Flattening Of The Curve

UB Greensfelder LLP on

Let’s take a step back from Covid-19 news, for a moment, which, rightfully, has dominated the news and everyone’s collective conscience, and focus on something that has been pervasive in the broker-dealer world for much, much...more

Morgan Lewis

FINRA Rule 5130 Evolves Further to Address Non-US Investors and Securities Offerings

Morgan Lewis on

FINRA and its predecessor NASD have long worked to promote fairness in the allocation of new issues of equity securities by prohibiting allocations to broker-dealers and persons who, among other things, own or control,...more

Eversheds Sutherland (US) LLP

Here’s looking at you, FINRA - the possible implications of “extraordinary cooperation” and Regulatory Notice 19-23 on...

In October 2005, we wrote an article titled “Cooperation, Only More So: What It Takes to Receive Credit for Cooperating with NASD.” The title came from a line in the movie Casablanca. In it, Rick (Humphrey Bogart) is asked...more

Eversheds Sutherland (US) LLP

The best interest standard under FINRA’s suitability rule

In connection with the US Securities and Exchange Commission’s (SEC) proposed Regulation Best Interest, the Financial Industry Regulatory Authority (FINRA) has asserted (with some case law support from the SEC) that its...more

McGuireWoods LLP

FINRA 2018 Examination Findings

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The Financial Industry Regulatory Authority (FINRA) recently published its 2018 Report on FINRA Examination Findings, focusing on (1) suitability for retail customers, (2) fixed income markup disclosure, (3) reasonable...more

Dorsey & Whitney LLP

Digital Assets a Focus Point for Regulators

Dorsey & Whitney LLP on

As investor interest in cryptocurrencies has picked up, government agencies and non-governmental organizations tasked with protecting investors are taking a harder look at these virtual investment products. While the...more

Mayer Brown Free Writings + Perspectives

NYSE Proposes Change to the Definition of “Membership Organization” under Rule 2

The New York Stock Exchange LLC (“NYSE”) proposes to amend Rule 2 to remove the FINRA or other national securities exchange membership requirement for member organizations. ...more

K&L Gates LLP

FINRA Requests Comment on Rules Governing Outside Business Activities and Private Securities Transactions

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The Financial Industry Regulatory Authority (“FINRA”) recently issued a notice requesting comments on the effectiveness and efficiency of its Rules 3270 (Outside Business Activities of Registered Persons) and 3280 (Private...more

McGuireWoods LLP

FINRA President and CEO Robert Cook discusses FINRA360 and Consolidating Enforcement Divisions

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On May 17, 2017, at the annual FINRA conference in Washington D.C., FINRA President and CEO Robert Cook discussed the recently-launched FINRA360 initiative: a top-to-bottom review of FINRA’s operations and organization. Cook...more

Latham & Watkins LLP

FINRA Proposes Desk Commentary Safe Harbor

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The safe harbor would offer relief from certain requirements of FINRA’s research rules, but significant compliance obligations and questions remain. On April 12, 2017, the Financial Industry Regulatory Authority, Inc....more

Latham & Watkins LLP

FINRA Proposes New Registration and Examination Rules

Latham & Watkins LLP on

The proposed consolidated rules bifurcate the representative-level examination program and introduce greater flexibility in obtaining and maintaining registrations. On March 8, 2017, the Financial Industry Regulatory...more

Morgan Lewis

IRS Announces Fines Paid to FINRA Are Not Deductible

Morgan Lewis on

Fines pertaining to violations of federal securities laws and certain FINRA rules may not be deducted. The Internal Revenue Service (IRS) in low-level advice recently announced its position that certain fines paid to...more

Goodwin

Financial Services Weekly News - June 2016 #5

Goodwin on

Regulatory Developments - FSOC Rescinds GE Capital's SIFI Designation - On June 29, the Financial Stability Oversight Council (FSOC) announced that it had voted unanimously to “rescind its determination that...more

Broker-Dealer Compliance + Regulation

FINRA Sanctions Investment Firm Following Unsuitable Sales of Nontraditional ETFs

On June 7, 2016, FINRA settled proceedings against a New York-based investment firm for alleged violations of its suitability and related rules, namely NASD Rule 2310 and FINRA Rules 2111 and 2010. According to FINRA,...more

WilmerHale

Registration of Associated Persons with Algorithmic Trading Responsibilities

WilmerHale on

On April 7, 2016, the Securities and Exchange Commission (“SEC”) approved the Financial Industry Regulatory Authority's (“FINRA”) proposal to amend NASD Rule 1032 (Categories of Representative Registration) to require...more

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