News & Analysis as of

Broker-Dealer

Sheppard

From Penalty to Parity: The SEC Rethinks Stablecoin Risk

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The Securities and Exchange Commission (“SEC”) has signaled the lowering of a major regulatory barrier for the institutional adoption of stablecoins. On February 19, SEC Commissioner Hester M. Peirce released a Statement...more

Katten Muchin Rosenman LLP

Tilting At Windmills: Defending Overconcentration Claims In Today’s Index-Driven Equity Markets

Sancho Panza dispensed this practical wisdom over 400 years ago, and his sage advice survives as a fundamental tenet of Modern Portfolio Theory. The notion that individual investors should maintain a diversified basket of...more

McGuireWoods LLP

SEC and FinCEN Hit Broker-Dealer for Sweeping AML Compliance Failures

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On March 6, 2026, the SEC and FinCEN announced parallel enforcement actions against a New York-based registered broker-dealer for systemic anti-money laundering (“AML”) failures, imposing combined penalties of $80 million –...more

Bressler, Amery & Ross, P.C.

Broker-Dealers: FINRA Looking Forward with Enforcement Enhancements

Last week, Bill St. Louis, FINRA’s Executive Vice President of FINRA’s Enforcement Department, published a blog titled “Enhancing Our Enforcement Program.”...more

Skadden, Arps, Slate, Meagher & Flom LLP

Raising the Limit: FINRA Amends Gift Rule (Rule 3220)

In February 2026, the Securities and Exchange Commission (SEC) approved and the Financial Industry Regulatory Authority (FINRA) adopted amendments to FINRA Rule 3220 (Influencing of Rewarding Employees or Others),...more

Hanzo

How To Achieve WORM Compliance

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If you are unsure whether your current systems truly meet write once, read many (WORM) requirements, you are not alone. How to achieve WORM compliance is often a top concern for those responsible for managing regulated...more

Morgan Lewis

Unfinished Business: FINRA’s Proposed Rule 2210 Changes on Projections Fall Short of Marketing Rule Alignment

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FINRA’s reproposed amendments to Rule 2210 would permit broker-dealers to include projected performance and targeted returns in marketing materials subject to certain conditions but fall short of full alignment with the SEC's...more

K2 Integrity

[Webinar] Navigating Internal Audit, Cyber Risk, and Regulatory Expectations in Broker-Dealer Operations - March 25th, 12:30 pm ET

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Join K2 Integrity for a practical discussion on the intersection of internal audit, cybersecurity, and regulatory oversight in the broker-dealer space using real-word case studies. By the end of this session, you will be able...more

Seward & Kissel LLP

90-Day Warning: Regulation S-P Amendments Compliance Deadline Approaching for Smaller Entities

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On May 15, 2024, the SEC adopted amendments to Regulation S‑P, adding new obligations for registered investment advisers, investment companies, broker‑dealers (including funding portals), and transfer agents. ERAs and private...more

Hanzo

FINRA Record Retention Requirements

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For broker-dealers and financial firms, careful recordkeeping is more than just a best practice. There are strict rules on preserving data, such as internal records and social media posts, and these rules are enforced by the...more

Maynard Nexsen

Client Alert: FINRA Enforcement Program Enhancements

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As part of FINRA’s efforts to improve effectiveness and efficiency through its “FINRA Forward” initiative, FINRA’s Department of Enforcement recently implemented “common-sense improvements” to its program. The improvements,...more

Morgan Lewis

SEC and FINRA Enforcement Trends for Broker-Dealers: 2025-2026

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In 2025, the US Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) experienced significant leadership changes, staffing departures, and a renewed “back to basics” emphasis on...more

Hanzo

An Overview of FINRA Rule 3110

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The Financial Industry Regulatory Authority (FINRA) is an organization that enforces the Securities and Exchange Commission’s (SEC) regulatory requirements. Gaining an overview of FINRA Rule 3110 is critical if your...more

DLA Piper

FinCEN Issues Exceptive Relief From Beneficial Ownership Identification And Verification Requirements At Each Account Opening

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On February 13, 2026, the United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued an order (Order) granting certain banks, mutual funds, brokers, and dealers exceptive relief from the...more

Morgan Lewis

FINRA Raises Gifts Rule Limit to $300, But Lower Limits Still Apply Under Other Rules

Morgan Lewis on

On February 12, 2026, the US Securities and Exchange Commission approved FINRA’s proposed amendment to FINRA Rule 3220 (the Gifts Rule), increasing the annual gift limit from $100 to $300 per recipient. The amendment will...more

Eversheds Sutherland (US) LLP

Dual Registrant Regulatory Roundup - March 2026

Welcome to the Regulatory Roundup. Each month, Eversheds Sutherland Investment Services attorneys review significant regulatory developments (including notable rulemakings and guidance from securities regulators) from the...more

Benesch

Dance Like No One is Watching, Text Like Your Words Will Be Published on the Front Page: The Importance of Internal Compliance...

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Earlier this month, Benjamin Edwards, a broker-dealer firm, agreed to a censure and to pay a $750,000 fine for failing to properly supervise and preserve its employees’ business-related text messages....more

Katten Muchin Rosenman LLP

Reimagining Securities Arbitration: FINRA Launches Broad Review of Arbitration Rules and Requests Comment on Modernization...

Responding to concerns raised and longstanding debates over how the Financial Industry Regulatory Authority’s (FINRA) arbitration forum functions, on March 2, FINRA issued Regulatory Notice 26‑06, seeking public comment on...more

Katten Muchin Rosenman LLP

FINRA Unveils Changes to Enforcement Program to Increase Transparency and Efficiency

The Financial Industry Regulatory Authority (FINRA) announced changes to its enforcement program on March 2, as part of its broader "FINRA Forward" initiative. FINRA believes these “common-sense improvements,” which follow...more

Latham & Watkins LLP

Increased FINRA Gift Limit to Become Effective March 30

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The amended Gifts Rule marks the first adjustment since 1992 and codifies longstanding guidance on gift valuation, aggregation, and exclusions with minor adjustments....more

Mayer Brown Free Writings + Perspectives

SEC Advisory Committee Turns Spotlight on Finders and Secondary Market Growth

The Securities and Exchange Commission’s Small Business Capital Formation Advisory Committee convened virtually on February 24, 2026, marking its first meeting of the year following the government shutdown that disrupted its...more

Shumaker, Loop & Kendrick, LLP

Client Alert: What FINRA’s Eleven-Category Risk Model Means for Your Next Examination

The Financial Industry Regulatory Authority (FINRA) recently published a transparent description of how it assesses member-firm risk and uses those results to plan and tailor examinations. This framework provides a roadmap...more

Eversheds Sutherland (US) LLP

FINRA Issues Updated Guidance On Negative Consent For Bulk Transfers And Eliminates Prereview Of Draft Customer Letters

FINRA has issued guidance on when member firms may rely on negative consent to transfer or assign customer accounts in bulk and has announced that it will discontinue its long-standing practice of reviewing draft customer...more

Orrick, Herrington & Sutcliffe LLP

SEC allows broker-dealers to apply 2 percent ‘haircut’ on payment stablecoins

On February 19, the SEC’s Division of Trading and Markets issued a new frequently asked question (FAQ) on the treatment of payment stablecoins under the broker-dealer net capital rule (Exchange Act Rule 15c3-1) to its list of...more

Davis Wright Tremaine LLP

The SEC 'Guides' Toward Crypto Adoption and Signals a Capital Friendly Future

On February 19, 2026, the SEC's Division of Trading and Markets issued a series of FAQs with a follow-up statement from SEC Commissioner and Crypto Task Force Leader Hester Peirce. Below, we analyze and comment on the FAQs...more

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