2022076764101 FTP Securities LLC CRD 129356 AWC lp.pdf

From September 2020 through June 2022, FTP Securities failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with applicable FINRA rules for reviewing and evaluating outside business activities. During this period, the firm received written notice that a registered person was engaging in investment-related outside business activities but failed to reasonably review and evaluate them. As a result, FTP Securities violated FINRA Rules 3110, 3270.01, and 2010, and is censured and fined $35,000.

Regulatory Notice 25-05

Summary

FINRA seeks comment on a proposed new rule to streamline and reduce unnecessary burdens regarding existing requirements addressing the outside activities of member firms’ associated persons, including registered persons (the Proposal). The Proposal is the result of FINRA's retrospective review of FINRA's rules governing outside business activities (OBAs) and private securities transactions (PSTs), FINRA Rule 3270 (Outside Business Activities of Registered Persons) and FINRA Rule 3280 (Private Securities Transactions of an Associated Person), respectively.

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