The importance of a compliance program cannot be understated. These programs serve to help member firms follow applicable rules and regulations and mitigate the risk of allegations of a violation. But how much responsibility falls on the shoulders of those who run...
FINRA
What types of regulations should my firm follow when using the cloud?
Business leaders can take advantage of a number of opportunities when using cloud computing models. This is true for many types of enterprises, including broker-dealer firms — and the Financial Industry Regulatory Authority (FINRA) has taken notice. The organization...
How can I defeat FINRA Rule 2010’s broad reach?
The Financial Industry Regulatory Authority (FINRA) works to keep the markets safe for investors and has the power to sanction investor-brokers who violate its rules. Some of these rules have a very broad reach, such as Rule 2010. What is Rule 2010? Rule 2010 provides...
SEC in court over efforts to regulate crypto
If any government body can regulate cryptocurrency, it is likely the United States Securities and Exchange Commission (SEC), and with trillions on the line, it seems only a matter of time before the feds put regulations in place. How can the feds regulate crypto? The...
New leadership, new FINRA? What to expect in 2022.
Leadership of an organization can have a direct impact on the group’s culture, outlook, and practices. Changes in leadership structure can result in changes in any of these areas. As a result, it is a good idea for broker-dealers to keep apprised of such changes...
FINRA updates rules to allow for brokers to return after an absence
The Financial Industry Regulatory Authority (FINRA) recently announced an update to some of its rules regarding registrants who may have stepped away from the industry for a short period of time. The group specifically states that it added a new program, the...
FINRA fines firm $1M for Failing to supervise brokers
It all started with a customer complaint. In some situations, such a complaint can trigger an investigation by the Financial Industry Regulatory Authority (FINRA), which, in a recent case, was sufficient to warrant such action. FINRA began its investigation against...
Feds target brokers who sought COVID relief funds: 3 things to know
The pandemic and resulting stay-at-home orders were crippling for businesses throughout the nation. The federal government provided a number of different financial programs in an effort to help entrepreneurs stay afloat during these difficult times. Each program had...
How serious are violations of supervisory and fair dealing rules?
The Financial Industry Regulation Authority (FINRA) requires those who provide a recommendation for a transaction or investment strategy involving a security to a client have reasonable basis for the advice. The organization states this basis should be the result of...
Will the feds push for more broker accountability?
Those who operate in the financial planning and wealth management sector need to follow an array of regulations. The standards that guide these professionals can vary depending on their title — making compliance even more complicated. Financial planners, for example,...