Lessons from FINRA’s 2019 Report on Examination Findings and Observations

Dechert LLP
Contact

Dechert LLP

The Financial Industry Regulatory Authority published its 2019 Report on Examination Findings and Observations (2019 Report) on October 16, 2019. This marks the third annual report of FINRA findings, but in a departure from the prior reports, the 2019 Report distinguishes “findings” (determinations that a firm or registered person has violated SEC, FINRA or other relevant rules) from “observations” (suggestions as to how a firm might improve its control environment, communicated separately from a formal examination report).

The 2019 Report focuses on a number of findings and observations, involving: sales practice and supervision; firm operations; market integrity; and financial management. In addition, the 2019 Report provides examples of effective practices, which can help firms improve their supervision, compliance and risk management programs. This OnPoint discusses key findings from the 2019 Report, as well as FINRA’s observations regarding how firms might have avoided related weaknesses and risks.1

Sales Practice and Supervision

The 2019 Report focuses on a variety of supervision issues, as well as: suitability; digital communication; anti-money laundering (AML); and Uniform Transfers to Minors Act (UTMA) and Uniform Grants to Minors Act (UGMA) accounts. Noteworthy examination findings and observations include:

  • Supervision:2 FINRA found that some firms did not have sufficient written supervisory procedures (WSPs) to adequately address newly adopted or amended rules applicable to their businesses. In addition, FINRA found that some firms had limited branch supervision, inadequate record-keeping, and insufficient supervision for specific types of accounts (i.e., restricted and insider accounts; margin accounts; option accounts). FINRA further noted weaknesses involving some firms’ branch office and non-branch office supervision and inspection programs. In particular, FINRA found: a lack of understanding of particular products and services offered at certain locations; inspections that were not tailored to the products and services offered; and instances of inadequate response to red flags of potential problematic activities. The 2019 Report references a lack of consistency in memorializing inspection reports in writing. Further, FINRA noted supervisory deficiencies when registered representatives used Consolidated Account Reports (CARs), including with respect to verification that information regarding assets held away from the member firm were reflected accurately in CARs.3
  • Suitability: FINRA found that some firms did not have adequate supervisory systems to determine that recommendations satisfied the firm’s customer-specific suitability obligation in light of the particular customer’s investment profile (e.g., financial situation and needs, investment experience, risk tolerance, time horizon, investment objectives, liquidity needs).4 Although FINRA did not discuss these findings in connection with preparation for Regulation Best Interest, firms will want to take them into account when reviewing their supervisory systems and controls in connection with preparing for the SEC’s new rule.

Generally, FINRA noted that some firms lacked (or failed to use) supervisory systems that were reasonably designed to detect red flags indicating potentially unsuitable recommendations (e.g., not questioning multiple transactions in the same security that were marked as “unsolicited”). Other findings related to supervisory systems that were not adequately designed to reasonably assess the suitability of recommendations that customers exchange certain securities (particularly, mutual funds, variable annuities and unit investment trusts). FINRA indicated that some firms did not have adequate supervisory processes to identify patterns of unsuitable recommendations, especially in connection with exchanges of long-term products (e.g., reviews of trade blotters). FINRA further noted inadequate supervisory controls over registered representatives’ changes to customers’ account information, as well as supervisory failures to: detect trading patterns suggesting possible excessive trading; or respond to red flags for excessive trading highlighted in exception reports.

  • Digital Communication: The 2019 Report generally notes the difficulties that some firms have experienced in complying with their supervisory and recordkeeping requirements with respect to the use of digital communications tools, technologies and services. In particular, although some firms have prohibited the use of certain communication channels such as texting, messaging, social media or collaboration applications (e.g., WhatsApp, WeChat, Facebook, Slack, HipChat) for business-related communications with customers, FINRA noted that some firms failed to maintain a process to reasonably identify and respond to red flags that registered representatives were using prohibited communication channels for firm business. FINRA also observed that some registered representatives used chatrooms or other digital communications to conduct electronic sales seminars in violation of firm procedures and outside of the firm’s supervisory and recordkeeping processes.5

FINRA noted that firms should conduct reviews of customer complaints, registered representatives’ emails, outside business activities and advertising, in order to detect the use of prohibited communications channels. Moreover, FINRA cited as examples of effective practices: the establishment of comprehensive governance processes; defining and controlling permissible digital channels; implementing WSPs to manage video content; implementing mandatory training programs; and disciplining the misuse of digital communications.

  • AML: FINRA found that some firms had deficiencies in the design and implementation of systems and processes to detect and report suspicious activity as required by the Bank Secrecy Act and regulations thereunder.6 In particular, FINRA noted that firms should be careful to review and revise their AML programs as their businesses and customers change. FINRA also reminded firms that securities trading must be monitored for suspicious activity reporting, including for red flags potentially indicating market dominance, prearranged trading or instances where groups of seemingly unrelated accounts were working in concert to manipulate stock prices. FINRA also noted the need to monitor third-party wire transactions, and for introducing brokers not to rely excessively on their clearing firms. According to FINRA, introducing brokers remain responsible for monitoring suspicious activity attempted or conducted through the member firm.
  • UTMA and UGMA Accounts: FINRA indicated that some firms did not satisfy their “Know Your Customer” obligations under FINRA Rule 2090 with respect to UTMA and UGMA accounts, because such firms did not transfer authority for an account to its beneficiary once he or she reached the age of majority. In particular, FINRA noted that effective practices might include implementing procedures to: verify the authority of custodians of UTMA and UGMA accounts; include automated tools to track when beneficiaries of those account reach the age of majority; and notify custodians and registered representatives when beneficiaries are approaching or have reached the age of majority.
Firm Operations

The 2019 Report focuses on cybersecurity, business continuity plans (BCPs) and fixed income mark-up disclosure. Noteworthy examination findings and observations include:

  • Cybersecurity: To help firms improve their cybersecurity programs, and potentially their Regulation S-P compliance, FINRA identified a number of practices that some firms have implemented to enhance their cybersecurity risk-management programs. These practices include:
    • Maintaining branch-level written cybersecurity policies, and establishing procedures to verify the implementation and functioning of such controls.
    • Documenting policies regarding vendor and third-party management
    • Establishing and testing written formal incident response plans (including tools to identify, classify, prioritize, track and close cybersecurity-related incidents).
    • Encrypting all confidential data wherever stored.
    • Implementing timely application of system security patches for critical firm resources (e.g., servers, network routers, desktops, laptops, software systems).
    • Implementing and maintaining “Policies of Least Privilege,” or other appropriate policies and procedures, to: grant system and data access only when required; and track access to data or systems (e.g., multi-factor authentication controls).
    • Maintaining a current inventory of critical information technology assets, which should include legacy assets that are no longer supported by vendors.
    • Implementing data loss prevention controls to protect sensitive customer information.
    • Providing robust cybersecurity training for registered representatives, third-party providers and consultants.
    • Implementing procedures that address the documentation, review, prioritization, testing, approval and management of hardware and software changes.
  • BCPs:7 FINRA indicated that some firms’ BCPs did not reflect certain market conditions, business models or other circumstances. Furthermore, FINRA noted that some firms failed to identify all of their mission-critical systems or to update their BCPs after significant operational changes. FINRA noted that effective practices for BCPs might include: engaging in annual testing (e.g., for sufficient capacity, currency of contact information and to reflect operational changes); and incorporating test results into firm training. In addition, FINRA noted that a registered principal must be responsible for the firm’s annual BCP review, and that firms should incorporate the test results into their training programs.
  • Fixed Income Mark-up Disclosure: The 2019 Report notes many of the same deficiencies with this disclosure (which is required by FINRA Rule 2232 and Municipal Securities Rulemaking Board Rule G-15) as FINRA had identified in its 2018 Report. In particular, FINRA noted that some firms: mischaracterized their compensation by disclosing additional charges separate and apart from their disclosure of mark-ups and mark-downs; created confusion by inaccurately depicting registered representatives’ sales credits or concessions; or labeled only sales credits or concessions as the total mark-up or mark-down. Other deficiencies identified by FINRA involved inaccuracies in the determination of prevailing market prices and the disclosure of execution times.

Market Integrity

The 2019 Report focuses on best execution, direct market access controls and short sales. Noteworthy examination findings and observations include:

  • Best Execution: FINRA found that some firms failed to conduct execution quality reviews of competing markets or certain order types. FINRA also found that, in some cases, firms failed to consider the factors required by FINRA Rule 5310 when conducting execution quality reviews (e.g., speed of execution, price improvement opportunities, likelihood of execution of limit orders).8 FINRA further noted that some firms did not adequately address or disclose potential conflicts of interest relating to their routing of orders to affiliated alternative trading systems. FINRA also observed failures in some firms’ order routing reports pursuant to Rule 606 of Regulation NMS, including with respect to orders routed to their own trading desks.
  • Direct Market Access Controls: As in FINRA’s 2017 and 2018 Reports, FINRA found many of the same issues related to firms’ compliance with Rule 15c3-5 under the Securities Exchange Act of 1934, especially in the case of providing access to trading in fixed-income securities on exchanges or alternative trading systems. In particular, FINRA noted that some firms’ WSPs and risk management controls did not address: pre-trading order limits; pre-set capital thresholds; or duplicative and erroneous order controls. FINRA also identified weaknesses in some firms’ controls for requesting, approving, reviewing and documenting intra-day adjustments to credit controls. Similarly, FINRA noted inadequate financial risk management controls (e.g., lack of appropriate capital thresholds, aggregate daily limits or credit limits). FINRA reminded firms to regularly assess the appropriateness of their customer-specific capital thresholds and pre-set credit limits. In addition, the 2019 Report indicates that some firms failed to maintain reasonably designed risk-management controls that could support certification by the firm’s chief executive officer, as required by Rule 15c3-5(e)(2). With respect to some firms that use multiple systems to provide direct market access, FINRA noted the absence of reasonable controls to confirm that those systems’ records were aggregated and integrated in a timely manner (e.g., with respect to post-trade and supervisory reviews), especially in the case of potential manipulative trading.
  • Short Sales: FINRA reminded firms of observations in its 2017 Report with respect to compliance with Regulation SHO Rules 200-204.9 The 2019 Report also references the inability of some firms to satisfy Rule 204’s Continuous Net Settlement (CNS) System fail-to-deliver close-out requirement. Specifically, FINRA noted that these firms did not implement a sufficient process to properly account for instances of failure to deliver shares at settlement (fails), which resulted in fails not being closed out during the required settlement period. FINRA also noted that some firms did not accurately allocate CNS fails to other registered brokers or dealers for which the firm clears trades or from which it receives trades for settlement. As potential effective practices for firms to adopt with respect to rates charged for borrowing, sourcing and locating securities, FINRA identified the periodic review of policies relating to firms’ rates, as well as monitoring the aging of short positions to determine the appropriateness of originally assigned rates.

Financial Management

The 2019 Report focuses on liquidity and credit risk management, segregation of client assets and net capital calculations. Noteworthy examination findings and observations include:

  • Liquidity and Credit Risk Management: FINRA highlighted practices for firms to strengthen their liquidity management programs, including: developing contingency plans for operating in a stressed environment; updating liquidity risk management practices; conducting stress tests; and maintaining a robust internal control framework to capture, measure, aggregate, manage and report credit risk.
  • Segregation of Client Assets: FINRA stated that it found many of the same concerns as were discussed in its 2018 Report regarding compliance with the requirements of Exchange Act Rule 15c3-3. In particular, FINRA observed that some firms faced continuing challenges with respect to check forwarding, possession and/or control. In this regard, some firms were found to have: missing or inaccurate information on their blotters; inadequate processes with respect to possession or control; inaccurate reserve formula calculations; and coding errors.
  • Net Capital Calculations: FINRA noted the same deficiencies in some firms’ compliance with Exchange Act Rule 15c3-1 as it had discussed in its 2017 and 2018 Reports. Further, FINRA identified additional deficiencies – in particular, FINRA noted that some firms: applied incorrect haircuts to fixed income securities, used incorrect capital charges for underwriting commitments; and employed inaccurate classifications of receivables, liabilities and reserves. FINRA also found that some firms failed to: recognize on their books and records receivables due from insurance carriers and the corresponding liabilities owed to customers; obtain opinions of counsel as required by Rule 15c3-1; maintain adequate documentation to substantiate the allocation of costs under expense sharing agreements, accurately accrue expenses; or correctly net intercompany accounts with different affiliated entities.

Conclusion

While the examination findings and observations in the 2019 Report may indicate potential areas where FINRA intends to focus resources in the coming year, member firms should not expect examinations to be limited to the issues highlighted in this OnPoint. It is important to note that the 2019 Report reflects FINRA’s continuing emphases on supervision and cybersecurity, as well as a considerable push for firms to adopt FINRA-recommended best practices. The 2019 Report also may foreshadow areas of focus once compliance with Regulation Best Interest is required commencing June 30, 2020.

Footnotes

1) In some instances, this OnPoint tracks the 2019 Report, as well as SEC and FINRA rules, without the use of quotation marks.

2) FINRA Rule 3110 (Supervision) requires firms to establish, maintain and enforce a system to supervise their activities and the activities of their associated persons, which is reasonably designed to achieve compliance with federal securities laws and regulations as well as FINRA rules.

3) FINRA cited to a number of additional resources, including a prior FINRA Regulatory Notice, as background for its findings. See FINRA Regulatory Notice 10-19s (April 2010).

4) Currently, FINRA Rule 2111 (Suitability) establishes three primary obligations for firms and their associated persons: reasonable-basis suitability; customer-specific suitability; and quantitative suitability. These obligations were incorporated into the SEC’s duty of care under new Regulation Best Interest. For further information, please refer to Dechert OnPoint, SEC Adopts Enhanced Standard of Conduct for Broker-Dealers and Clarifies Fiduciary Duties of Investment Advisers.

5) Exchange Act Rules 17a-3 and 17a-4, as well as FINRA Rule Series 4510 (Books and Records Requirements), require a firm (among other things) to create and preserve, in an easily accessible place, originals of all communications received and sent relating to its “business as such.” FINRA Rule 3110(b)(4) (Review of Correspondence and Internal Communications) requires firms to have supervisory procedures in place to review incoming and outgoing written (including electronic) correspondence and internal communications relating to their investment banking or securities business. If a firm permits its associated persons to use a particular application – for example, an app-based messaging service or a collaboration platform – the firm must preserve records of business-related communications and supervise the activities and communications of those persons on the application.

6) Further, FINRA Rule 3310 (Anti-Money Laundering Compliance Program) requires firms to develop and implement a written AML program reasonably designed to comply with the requirements of the Bank Secrecy Act and regulations thereunder.

7) FINRA Rule 4370 (Business Continuity Plans and Emergency Contact Information) requires firms to create and maintain a written BCP with procedures that are reasonably designed to enable firms to meet their obligations to customers, counterparties and other broker-dealers during an emergency or significant business disruption.

8) FINRA Rule 5310 (Best Execution and Interpositioning) requires firms to conduct a “regular and rigorous” review of the execution quality of customer orders if the firm does not conduct an order-by-order review.

9) Regulation SHO Rules 200-204 require firms to address risks relating to market manipulation, market liquidity and investor confidence, by regulating excessive and naked short sales so that purchasers of securities from short sellers receive their securities positions in a timely manner.

The authors would like to thank Thomas Jang for his contributions to this OnPoint.

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.

© Dechert LLP | Attorney Advertising

Written by:

Dechert LLP
Contact
more
less

Dechert LLP on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide

JD Supra Privacy Policy

Updated: May 25, 2018:

JD Supra is a legal publishing service that connects experts and their content with broader audiences of professionals, journalists and associations.

This Privacy Policy describes how JD Supra, LLC ("JD Supra" or "we," "us," or "our") collects, uses and shares personal data collected from visitors to our website (located at www.jdsupra.com) (our "Website") who view only publicly-available content as well as subscribers to our services (such as our email digests or author tools)(our "Services"). By using our Website and registering for one of our Services, you are agreeing to the terms of this Privacy Policy.

Please note that if you subscribe to one of our Services, you can make choices about how we collect, use and share your information through our Privacy Center under the "My Account" dashboard (available if you are logged into your JD Supra account).

Collection of Information

Registration Information. When you register with JD Supra for our Website and Services, either as an author or as a subscriber, you will be asked to provide identifying information to create your JD Supra account ("Registration Data"), such as your:

  • Email
  • First Name
  • Last Name
  • Company Name
  • Company Industry
  • Title
  • Country

Other Information: We also collect other information you may voluntarily provide. This may include content you provide for publication. We may also receive your communications with others through our Website and Services (such as contacting an author through our Website) or communications directly with us (such as through email, feedback or other forms or social media). If you are a subscribed user, we will also collect your user preferences, such as the types of articles you would like to read.

Information from third parties (such as, from your employer or LinkedIn): We may also receive information about you from third party sources. For example, your employer may provide your information to us, such as in connection with an article submitted by your employer for publication. If you choose to use LinkedIn to subscribe to our Website and Services, we also collect information related to your LinkedIn account and profile.

Your interactions with our Website and Services: As is true of most websites, we gather certain information automatically. This information includes IP addresses, browser type, Internet service provider (ISP), referring/exit pages, operating system, date/time stamp and clickstream data. We use this information to analyze trends, to administer the Website and our Services, to improve the content and performance of our Website and Services, and to track users' movements around the site. We may also link this automatically-collected data to personal information, for example, to inform authors about who has read their articles. Some of this data is collected through information sent by your web browser. We also use cookies and other tracking technologies to collect this information. To learn more about cookies and other tracking technologies that JD Supra may use on our Website and Services please see our "Cookies Guide" page.

How do we use this information?

We use the information and data we collect principally in order to provide our Website and Services. More specifically, we may use your personal information to:

  • Operate our Website and Services and publish content;
  • Distribute content to you in accordance with your preferences as well as to provide other notifications to you (for example, updates about our policies and terms);
  • Measure readership and usage of the Website and Services;
  • Communicate with you regarding your questions and requests;
  • Authenticate users and to provide for the safety and security of our Website and Services;
  • Conduct research and similar activities to improve our Website and Services; and
  • Comply with our legal and regulatory responsibilities and to enforce our rights.

How is your information shared?

  • Content and other public information (such as an author profile) is shared on our Website and Services, including via email digests and social media feeds, and is accessible to the general public.
  • If you choose to use our Website and Services to communicate directly with a company or individual, such communication may be shared accordingly.
  • Readership information is provided to publishing law firms and authors of content to give them insight into their readership and to help them to improve their content.
  • Our Website may offer you the opportunity to share information through our Website, such as through Facebook's "Like" or Twitter's "Tweet" button. We offer this functionality to help generate interest in our Website and content and to permit you to recommend content to your contacts. You should be aware that sharing through such functionality may result in information being collected by the applicable social media network and possibly being made publicly available (for example, through a search engine). Any such information collection would be subject to such third party social media network's privacy policy.
  • Your information may also be shared to parties who support our business, such as professional advisors as well as web-hosting providers, analytics providers and other information technology providers.
  • Any court, governmental authority, law enforcement agency or other third party where we believe disclosure is necessary to comply with a legal or regulatory obligation, or otherwise to protect our rights, the rights of any third party or individuals' personal safety, or to detect, prevent, or otherwise address fraud, security or safety issues.
  • To our affiliated entities and in connection with the sale, assignment or other transfer of our company or our business.

How We Protect Your Information

JD Supra takes reasonable and appropriate precautions to insure that user information is protected from loss, misuse and unauthorized access, disclosure, alteration and destruction. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. You should keep in mind that no Internet transmission is ever 100% secure or error-free. Where you use log-in credentials (usernames, passwords) on our Website, please remember that it is your responsibility to safeguard them. If you believe that your log-in credentials have been compromised, please contact us at privacy@jdsupra.com.

Children's Information

Our Website and Services are not directed at children under the age of 16 and we do not knowingly collect personal information from children under the age of 16 through our Website and/or Services. If you have reason to believe that a child under the age of 16 has provided personal information to us, please contact us, and we will endeavor to delete that information from our databases.

Links to Other Websites

Our Website and Services may contain links to other websites. The operators of such other websites may collect information about you, including through cookies or other technologies. If you are using our Website or Services and click a link to another site, you will leave our Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We are not responsible for the data collection and use practices of such other sites. This Policy applies solely to the information collected in connection with your use of our Website and Services and does not apply to any practices conducted offline or in connection with any other websites.

Information for EU and Swiss Residents

JD Supra's principal place of business is in the United States. By subscribing to our website, you expressly consent to your information being processed in the United States.

  • Our Legal Basis for Processing: Generally, we rely on our legitimate interests in order to process your personal information. For example, we rely on this legal ground if we use your personal information to manage your Registration Data and administer our relationship with you; to deliver our Website and Services; understand and improve our Website and Services; report reader analytics to our authors; to personalize your experience on our Website and Services; and where necessary to protect or defend our or another's rights or property, or to detect, prevent, or otherwise address fraud, security, safety or privacy issues. Please see Article 6(1)(f) of the E.U. General Data Protection Regulation ("GDPR") In addition, there may be other situations where other grounds for processing may exist, such as where processing is a result of legal requirements (GDPR Article 6(1)(c)) or for reasons of public interest (GDPR Article 6(1)(e)). Please see the "Your Rights" section of this Privacy Policy immediately below for more information about how you may request that we limit or refrain from processing your personal information.
  • Your Rights
    • Right of Access/Portability: You can ask to review details about the information we hold about you and how that information has been used and disclosed. Note that we may request to verify your identification before fulfilling your request. You can also request that your personal information is provided to you in a commonly used electronic format so that you can share it with other organizations.
    • Right to Correct Information: You may ask that we make corrections to any information we hold, if you believe such correction to be necessary.
    • Right to Restrict Our Processing or Erasure of Information: You also have the right in certain circumstances to ask us to restrict processing of your personal information or to erase your personal information. Where you have consented to our use of your personal information, you can withdraw your consent at any time.

You can make a request to exercise any of these rights by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

You can also manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard.

We will make all practical efforts to respect your wishes. There may be times, however, where we are not able to fulfill your request, for example, if applicable law prohibits our compliance. Please note that JD Supra does not use "automatic decision making" or "profiling" as those terms are defined in the GDPR.

  • Timeframe for retaining your personal information: We will retain your personal information in a form that identifies you only for as long as it serves the purpose(s) for which it was initially collected as stated in this Privacy Policy, or subsequently authorized. We may continue processing your personal information for longer periods, but only for the time and to the extent such processing reasonably serves the purposes of archiving in the public interest, journalism, literature and art, scientific or historical research and statistical analysis, and subject to the protection of this Privacy Policy. For example, if you are an author, your personal information may continue to be published in connection with your article indefinitely. When we have no ongoing legitimate business need to process your personal information, we will either delete or anonymize it, or, if this is not possible (for example, because your personal information has been stored in backup archives), then we will securely store your personal information and isolate it from any further processing until deletion is possible.
  • Onward Transfer to Third Parties: As noted in the "How We Share Your Data" Section above, JD Supra may share your information with third parties. When JD Supra discloses your personal information to third parties, we have ensured that such third parties have either certified under the EU-U.S. or Swiss Privacy Shield Framework and will process all personal data received from EU member states/Switzerland in reliance on the applicable Privacy Shield Framework or that they have been subjected to strict contractual provisions in their contract with us to guarantee an adequate level of data protection for your data.

California Privacy Rights

Pursuant to Section 1798.83 of the California Civil Code, our customers who are California residents have the right to request certain information regarding our disclosure of personal information to third parties for their direct marketing purposes.

You can make a request for this information by emailing us at privacy@jdsupra.com or by writing to us at:

Privacy Officer
JD Supra, LLC
10 Liberty Ship Way, Suite 300
Sausalito, California 94965

Some browsers have incorporated a Do Not Track (DNT) feature. These features, when turned on, send a signal that you prefer that the website you are visiting not collect and use data regarding your online searching and browsing activities. As there is not yet a common understanding on how to interpret the DNT signal, we currently do not respond to DNT signals on our site.

Access/Correct/Update/Delete Personal Information

For non-EU/Swiss residents, if you would like to know what personal information we have about you, you can send an e-mail to privacy@jdsupra.com. We will be in contact with you (by mail or otherwise) to verify your identity and provide you the information you request. We will respond within 30 days to your request for access to your personal information. In some cases, we may not be able to remove your personal information, in which case we will let you know if we are unable to do so and why. If you would like to correct or update your personal information, you can manage your profile and subscriptions through our Privacy Center under the "My Account" dashboard. If you would like to delete your account or remove your information from our Website and Services, send an e-mail to privacy@jdsupra.com.

Changes in Our Privacy Policy

We reserve the right to change this Privacy Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our Privacy Policy will become effective upon posting of the revised policy on the Website. By continuing to use our Website and Services following such changes, you will be deemed to have agreed to such changes.

Contacting JD Supra

If you have any questions about this Privacy Policy, the practices of this site, your dealings with our Website or Services, or if you would like to change any of the information you have provided to us, please contact us at: privacy@jdsupra.com.

JD Supra Cookie Guide

As with many websites, JD Supra's website (located at www.jdsupra.com) (our "Website") and our services (such as our email article digests)(our "Services") use a standard technology called a "cookie" and other similar technologies (such as, pixels and web beacons), which are small data files that are transferred to your computer when you use our Website and Services. These technologies automatically identify your browser whenever you interact with our Website and Services.

How We Use Cookies and Other Tracking Technologies

We use cookies and other tracking technologies to:

  1. Improve the user experience on our Website and Services;
  2. Store the authorization token that users receive when they login to the private areas of our Website. This token is specific to a user's login session and requires a valid username and password to obtain. It is required to access the user's profile information, subscriptions, and analytics;
  3. Track anonymous site usage; and
  4. Permit connectivity with social media networks to permit content sharing.

There are different types of cookies and other technologies used our Website, notably:

  • "Session cookies" - These cookies only last as long as your online session, and disappear from your computer or device when you close your browser (like Internet Explorer, Google Chrome or Safari).
  • "Persistent cookies" - These cookies stay on your computer or device after your browser has been closed and last for a time specified in the cookie. We use persistent cookies when we need to know who you are for more than one browsing session. For example, we use them to remember your preferences for the next time you visit.
  • "Web Beacons/Pixels" - Some of our web pages and emails may also contain small electronic images known as web beacons, clear GIFs or single-pixel GIFs. These images are placed on a web page or email and typically work in conjunction with cookies to collect data. We use these images to identify our users and user behavior, such as counting the number of users who have visited a web page or acted upon one of our email digests.

JD Supra Cookies. We place our own cookies on your computer to track certain information about you while you are using our Website and Services. For example, we place a session cookie on your computer each time you visit our Website. We use these cookies to allow you to log-in to your subscriber account. In addition, through these cookies we are able to collect information about how you use the Website, including what browser you may be using, your IP address, and the URL address you came from upon visiting our Website and the URL you next visit (even if those URLs are not on our Website). We also utilize email web beacons to monitor whether our emails are being delivered and read. We also use these tools to help deliver reader analytics to our authors to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

Analytics/Performance Cookies. JD Supra also uses the following analytic tools to help us analyze the performance of our Website and Services as well as how visitors use our Website and Services:

  • HubSpot - For more information about HubSpot cookies, please visit legal.hubspot.com/privacy-policy.
  • New Relic - For more information on New Relic cookies, please visit www.newrelic.com/privacy.
  • Google Analytics - For more information on Google Analytics cookies, visit www.google.com/policies. To opt-out of being tracked by Google Analytics across all websites visit http://tools.google.com/dlpage/gaoptout. This will allow you to download and install a Google Analytics cookie-free web browser.

Facebook, Twitter and other Social Network Cookies. Our content pages allow you to share content appearing on our Website and Services to your social media accounts through the "Like," "Tweet," or similar buttons displayed on such pages. To accomplish this Service, we embed code that such third party social networks provide and that we do not control. These buttons know that you are logged in to your social network account and therefore such social networks could also know that you are viewing the JD Supra Website.

Controlling and Deleting Cookies

If you would like to change how a browser uses cookies, including blocking or deleting cookies from the JD Supra Website and Services you can do so by changing the settings in your web browser. To control cookies, most browsers allow you to either accept or reject all cookies, only accept certain types of cookies, or prompt you every time a site wishes to save a cookie. It's also easy to delete cookies that are already saved on your device by a browser.

The processes for controlling and deleting cookies vary depending on which browser you use. To find out how to do so with a particular browser, you can use your browser's "Help" function or alternatively, you can visit http://www.aboutcookies.org which explains, step-by-step, how to control and delete cookies in most browsers.

Updates to This Policy

We may update this cookie policy and our Privacy Policy from time-to-time, particularly as technology changes. You can always check this page for the latest version. We may also notify you of changes to our privacy policy by email.

Contacting JD Supra

If you have any questions about how we use cookies and other tracking technologies, please contact us at: privacy@jdsupra.com.

- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.