Posts Categorized: Broker-Dealers

FINRA Issues Letter Guidance On Use of Performance Information with Institutional Investors

On June 9, 2017, the Financial Industry Regulatory Authority (“FINRA”) issued a letter (the “Letter”) giving guidance in response to a request by an open-ended fund to allow it to provide “Related Performance Information” in marketing material used with institutional investors. “Related Performance Information” is defined as the actual performance of separate or private accounts or funds… Read more »

U.K. Anti-Money Laundering Regulation Updated

The United Kingdom has published a near final regulation, the Money Laundering and Transfer of Funds (Information on the Payer) Regulations 2017 (the “Regulation”) under the E.U. Fourth Money Laundering Directive, to replace the Money Laundering Regulations 2007.  The Regulation is due to go into effect on June 26, 2017, although it may be delayed.  Under the… Read more »

FINRA Seeks Comment on Proposed Revisions to Unfair Underwriting Rule

On April 15, 2017, the Financial Industry Regulatory Authority (“FINRA”) published Regulatory Notice 17-15, seeking comments on its proposed revisions to FINRA Rule 5110, which prohibits broker-dealers from being involved in unfair underwritings.  The changes are, according to FINRA, designed to modernize the rule, first adopted in 1992 and updated last in 2004.  The changes… Read more »

FINRA Proposes to Restructure Exams

On April 7, 2017, the Financial Industry Regulatory Authority (“FINRA”) published in the Federal Register its proposal (the “Proposal”), filed with the Securities and Exchange Commission on March 8, that would consolidate registration rules, restructure the representative-level qualification examination and amend continuing education requirements.  Among other things, the Proposal would create a new exam, the Securities Industry Essentials… Read more »

FINRA Issues Proposed Safe Harbor Exemption for Desk Commentary

On April 11, 2017, the Financial Industry Regulatory Authority (“FINRA”) issued Regulatory Notice 17-16 proposing a safe harbor exemption from many of the research rules for certain desk commentary.  Firms may also decide that other desk commentary outside the proposal is not research, but if the desk commentary fits within the safe harbor it will be… Read more »

New “Special Study” of the Securities Market by Columbia Law and Business Schools

Columbia University Law and Business Schools announced that they will jointly carry out a new “Special Study” of the U.S. securities markets under a grant from the NASDAQ Educational Foundation.  The prior “Special Study” was published in 1963, and resulted in a number of significant changes in securities regulation, so there is some interest in… Read more »

Giancarlo Suggests Overhaul of CFTC

President Trump’s nominee for the permanent head of the Commodity Futures Trading Commission (the “CFTC”), J. Christopher Giancarlo, is a Republican and acting head  of the CFTC.  In a well-received and widely reported speech yesterday to an industry conference, Mr. Giancarlo said he would fix the “flawed” swaps trading rules.  He also pledged to streamline the CFTC… Read more »

UK FCA and PRA Amend Enforcement Procedures

In February 2017, the UK Financial Conduct Authority (the “FCA”) and the Prudential Regulation Authority issued a joint policy statement (the “Statement”) regarding enforcement, following up on their April 2016 consultation paper.  The Statement announces changes to the Decision Procedure and Penalties Manual (the “DEPP”) and the Enforcement Guide (the “EG”).  While there are a… Read more »

SEC’s Office of Compliance Inspections and Examinations Publishes 2017 Priorities

The Securities and Exchange Commission’s Office of Compliance Inspections and Examinations (the “OCIE”) has published it 2017 exam priorities.  These include (i) matters important to retail investors, (ii) risks to elderly and retiring investors and (iii) market-wide risks.  In terms of the latter, the OCIE will focus on: (i) compliance with the 2014 amendments to… Read more »

FINRA Exam Priorities for 2017

The Financial Industry Regulatory Authority (“FINRA”) issued a letter setting forth its exam priorities for 2017.  These include a focus on implementation of Regulatory Notice 15-46 on Best Execution, and exhorting firms to consider the continuing automation of the markets for equity securities and standardized options, and recent advances in trading technology and communications in the fixed… Read more »