Guidance
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Clarification of NASD Notice to Members
94-44 to situations in which a dually registered person maintains discretionary trading authority, determines portfolio changes, and prepares trade instructions for customer accounts and charges the accounts an asset-based fee.
Whether a proposed standby purchase agreement entered into between affiliate of a member and an issuer in connection with a public offering of the issuer's common stock could constitute an option.
Cash rebates issued to pension plan customers with respect to secondary market transactions in outstanding securities (under former Article III, Section 24, now Rule 2740 and IM-2740).
The Market Order Timeliness Statistical Report is published monthly based upon firm-reported data detailing the number of customer market orders executed by your firm in NMS securities and classifying these orders based on time duration to execute. Supplementary Material .01 of FINRA Rule 5310 – Best Execution and Interpositioning - states that member firms must make every effort to execute marketable customer orders it receives fully and promptly.
General
1. Q: Why does FINRA publish the Sanction Guidelines?
A: FINRA publishes the Sanction Guidelines to familiarize member firms and associated persons with the disciplinary sanctions that could result from typical securities industry rule violations.
2. Q: Who develops the sanctions and fines?
Background
Since we introduced our FINRA360 initiative, FINRA has taken a series of actions to enhance support for small firms, including providing small firms with tools and resources to help them comply with regulations.
A consistent comment that FINRA has heard is a desire on the part of small firms for a tool to allow them to get answers to general questions that did not rise to a level that required involvement by their Regulatory Coordinator.
- How do I entitle someone to access an eFOCUS report?
- Where are eFOCUS filings located in the redesigned FINRA Gateway?
- How do I transmit an eFOCUS filing to my clearing firm?
- When are my eFOCUS filings due?
- Where can I see previously filed eFOCUS reports?
- How do I amend a submitted eFOCUS report?
- How do I print an eFOCUS report?
The table below provides a reference description for all of the elements found for ATS Cross Manipulation exceptions identified during the month.
|
Term |
Description |
|---|---|
|
Exceptions Periods |
Date of all listed options position, as reported. |
|
Total Number of Exceptions |
Total number of issues reported during the period. |
Large Options Positions Reported (LOPR) - Listed Detail Data
|
Term |
|---|
1. Does Rule 5110 apply to public offerings that also are regulated under Rule 2310?
Yes. Rule 2310 regulates the underwriting terms and arrangements of direct participation programs and unlisted real estate investment trusts (collectively, “Investment Programs”) that are publicly offered. All public offerings in which a member participates, with limited exceptions provided in Rule 5110(h), must be filed, including Investment Programs.
Overview
This guidance is intended to provide direction on key information for a prospective and existing FINRA member firm that is contemplating to engage in activities utilizing an online platform or mobile application.1 Under Standard 6 of FINRA’s Standards for Admission (Standard), an applicant’s online platform or mobile application that the applicant intends to employ for the purpose of conducting business with customers and other members must be adequate and provide reasonably for business continuity.
Background
FINRA has been actively monitoring financial technology-related (FinTech) developments in the securities industry. A growing number of FinTech firms have been embracing new technologies, pioneering innovative products and developing new client-oriented financial services business models. Many traditional financial service providers are also rethinking their business models, incorporating these technologies and services. As part of the FINRA360 process, FINRA determined that it needed to enhance resources dedicated to this rapidly developing area of the industry.
The FINRA qualification and registration requirements are set forth in FINRA Rules 1210 through 1240.1 These rules, among other things: (1) require the registration of individuals as representatives or principals; (2) allow for the permissive registration of associated persons of firms; (3) establish a waiver program for individuals working for a financial services industry affiliate of a member firm; (4) require firms to designate a Principal Financial Officer and a Principal Operations Officer; and (5) set forth requirements for registered persons who are to function as princip
The Web CRD Late Filing Fee Report is a monthly analysis of FINRA firms' ability to meet certain filing obligations. In accordance with FINRA rules, firms are required to submit information related to registered representatives. This report displays a firm's performance in submitting certain U4 and U5 filings in the required time frame.