| FINRA.org

Regulation BI’s Care Obligation – Second Component

This course focuses on the second component of SEC Regulation BI’s Care Obligation. In this course, learners will apply the SEC's guidance on making a recommendation in the best interest of one particular retail customer and explore effective practices for ensuring that registered persons understand the process for evaluating reasonably available alternatives.

Estimated Completion Time: 10 Minutes

2024081184401 Joshua Ethan Scholnick CRD 7720831 Complaint ks (2025-1760142000912).pdf

The Department of Enforcement alleges: On August 25, 2023, while associated with a FINRA member, Joshua Scholnick cheated on the Securities Industry Essentials (SIE) examination. During the examination, which Scholnick took from his home, he used his phone to access prohibited study materials to help him answer the test’s questions. He did so after acknowledging and agreeing to follow FINRA’s SIE Rules of Conduct, which forbid possessing or using phones, notes, and study materials during the examination.

2022075850501 Jefferies LLC CRD 2347 AWC lp (2025-1760142000890).pdf

Between September 2009 and July 2022, Jefferies inaccurately calculated its customer and proprietary accounts of broker-dealers (PAB) reserve formula computations, as required by § 15(c) of the Securities Exchange Act of 1934 and Exchange Act Rule 15c3- 3, resulting in 136 customer reserve hindsight deficiencies and three PAB reserve hindsight deficiencies. This caused the firm to maintain inaccurate books and records and file inaccurate FOCUS reports.

2023077033101 Woodside Capital Securities LLC CRD 152603 AWC ks (2025-1760142000893).pdf

Between September 2021 and May 2024, Woodside had only one general securities principal, which is below the minimum required by FINRA Rule 1210.01. Also, Woodside became a FINRA member in 2010 and did not conduct independent testing of its anti-money laundering (AML) program until 2023, thereby violating FINRA Rule 3310(c). For these violations, Woodside is censured and fined $30,000.
Subscribe to