News & Analysis as of

Financial Industry Regulatory Authority (FINRA)

Gray Reed

Mr. Worldwide: FINRA’S Rule 8210 Reminder to Broker-Dealers

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FINRA lacks subpoena power. In lieu, Rule 8210 is the backbone of its self-regulatory framework. Failure to comply or providing incomplete or untruthful responses can lead to severe sanctions, including expulsion for firms...more

McDermott Will & Schulte

SEC provides two-year extension on short sale reporting and securities lending compliance

McDermott Will & Schulte on

On December 3, 2025, the US Securities and Exchange Commission (SEC) announced additional temporary exemptive relief from compliance with Securities Exchange Act of 1934 (Exchange Act) Rules 13f-2 and 10c-1a....more

McGuireWoods LLP

FINRA’s 2026 Annual Regulatory Oversight Report: Same Priorities, New Focus on AI and Cybersecurity

McGuireWoods LLP on

SERC’ling Up is your resource for staying ahead in today’s fast-evolving financial landscape. This newsletter delivers perspectives on the latest enforcement trends, regulatory updates and high-stakes developments affecting...more

Ropes & Gray LLP

SEC Agrees to Ease Long-Standing Research Analyst Restrictions on Major Banks

Ropes & Gray LLP on

On December 5, 2025, the Securities and Exchange Commission (the “SEC”) agreed to modify certain long-standing restrictions placed on major investment banks as part of a court settlement (commonly referred to as the “global...more

Mayer Brown Free Writings + Perspectives

SEC Consents to Modifications to Global Research Settlement

On December 5, 2025, the Securities and Exchange Commission consented to modifications to the Global Research Settlement applicable to settling firms, which has been in place since the aftermath of the dot‑com bubble...more

Orrick, Herrington & Sutcliffe LLP

SEC Further Delays Securities Lending and Short Position Reporting Compliance

On December 3, 2025, the Securities and Exchange Commission (SEC) issued an exemptive order extending the compliance dates for two rules: Rule 10c-1a (Reporting of Securities Loans) Rule 13f-2 (Short Position and Short...more

Venable LLP

SEC Staff Confirms Personal-Services Entities May Receive Transaction-Based Compensation Without Broker-Dealer Registration

Venable LLP on

On November 17, 2025, the Division of Trading and Markets (the “Staff”) of the Securities and Exchange Commission (SEC) issued a no-action letter allowing a personal-services entity (PSE) to receive transaction-based...more

Sullivan & Worcester

FINRA’s Small-Cap Sweep: Strategic Steps for Broker-Dealers

Sullivan & Worcester on

It has been approximately one (1) month since the Financial Industry Regulatory Authority (FINRA) has launched a targeted review of broker-dealer activity in small-capitalization offerings involving foreign...more

Morgan Lewis

Transaction-Based Compensation to Personal Services Entities: Not Registered, Not a Problem Says SEC Staff

Morgan Lewis on

The SEC Division of Trading and Markets recently issued significant no-action relief permitting registered representative–owned personal services entities to receive transaction-based compensation under strict conditions...more

Katten Muchin Rosenman LLP

Financial Markets and Funds Quick Take | Issue 44

Katten's Financial Markets and Funds Quick Take is a monthly newsletter highlighting key noteworthy developments potentially affecting financial markets and funds....more

Bressler, Amery & Ross, P.C.

FINRA Arbitrator Selection Process Update

In SR-FINRA-2024-022 (Proposed Rule Change to Amend the Codes of Arbitration Procedure to Make Clarifying, Technical and Procedural Changes to the Arbitrator List Selection Process), FINRA DRS sought to amend both the FINRA...more

Katten Muchin Rosenman LLP

FINRA Case Involving Gifts and Entertainment

On October 21, the Financial Industry Regulatory Authority (FINRA) filed a settled enforcement action involving allegedly improper gifts and entertainment in connection with sales of mutual fund shares. The $10 million fine...more

Morgan Lewis

Securities Enforcement Roundup – October 2025

Morgan Lewis on

In this issue of our monthly Securities Enforcement Roundup, we highlight top securities enforcement developments from October 2025. In October 2025: The federal government shutdown substantially impacted the US Securities...more

Mayer Brown Free Writings + Perspectives

FINRA Advances Regulatory Mission Through Artificial Intelligence

FINRA’s President and Chief Executive Officer, Robert Cook, recently published a blog post describing FINRA’s ongoing efforts to integrate artificial intelligence (“AI”), including generative AI (“GenAI”), into its regulatory...more

Eversheds Sutherland (US) LLP

Dual registrant regulatory roundup - November 2025

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

Bressler, Amery & Ross, P.C.

FINRA’s Wake-Up Call Concerning Gifts and Entertainment

As FINRA’s proposed amendments to Rule 3220 (Influencing or Rewarding Employees of Others), aka the “Gift Rule,” and related rules are pending, it has sent a strong message that firms must continue diligently policing gifts...more

A&O Shearman

FINRA Fines Brokerage Firm $10M for Lavish Gifts and Entertainment

A&O Shearman on

FINRA Rule 2341 generally limits gifts to $100 per person per year (though FINRA recently proposed an increase to $300) and permits only occasional, non-sales conditioned business meals or entertainment.  FINRA found that the...more

BakerHostetler

FINRA Announces Probe of Broker-Dealers’ Small-Cap Foreign Activity

BakerHostetler on

On October 23, FINRA announced that it is investigating broker-dealers that have helped small companies based in China and other foreign jurisdictions to go public, signaling that it is looking into possible stock...more

Dorsey & Whitney LLP

Deadlines for 2026 IARD Renewal Program

Dorsey & Whitney LLP on

All SEC-registered investment advisers (“advisers”) are required to annually renew their state notice filings and state representative and branch registrations through the IARD Renewal Program. Despite the government...more

Orrick, Herrington & Sutcliffe LLP

FINRA outlines its goals using AI

On October 28, FINRA detailed how it has used AI and GenAI technologies to help it oversee the securities markets. FINRA reported the rollout of new GenAI-enabled tools, such as an internal large language model chat system...more

Bracewell LLP

FINRA Announces Targeted Review of Small-Cap Foreign Offerings

Bracewell LLP on

FINRA has initiated a targeted examination focusing on broker-dealers’ participation in small-cap offerings involving foreign issuers, particularly those with business operations in foreign jurisdictions such as China. The...more

Seward & Kissel LLP

FINRA Announces New Probe Targeting Small Capitalization Issuers with Ties to China

Seward & Kissel LLP on

On Thursday October 23, 2025, the Financial Industry Regulatory Authority (FINRA) announced a targeted sweep aimed at small-capitalized (“small-cap”) exchange-listed issuers1 with ties to business operations in foreign...more

Foley & Lardner LLP

FINRA Enforcement’s Alive and Well — and AML Focused

Foley & Lardner LLP on

On October 9, 2025, FINRA’s Department of Enforcement finalized a letter of acceptance, waiver, and consent (AWC) to settle with a Miami-based broker-dealer for violations of FINRA Rules 3310(a) and 2010 regarding said firm’s...more

Katten Muchin Rosenman LLP

Regulatory Compliance in Leveraged ETF Sales Practices

The Wall Street Journal reported last week that “Popular Leveraged Funds Shock Investors With Huge Losses.” It is important to understand how to offer such instruments consistent with regulatory expectations....more

Sullivan & Worcester

FINRA Launches Targeted Review of Small-Cap Foreign Offerings

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The Financial Industry Regulatory Authority (FINRA) has announced a targeted review of broker-dealers involved in small-cap initial public offerings (IPOs) and related transactions for companies based in foreign...more

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