Guidance

For detailed information regarding amendments to FINRA Rule 4530, please see Regulatory Notice 13-08.

• Supervision
• Suitability
• Digital Communication
• Anti-Money Laundering (AML)

 The MSRB G-32 Report Card is a monthly status report to help firms evaluate the timeliness of their required filings under Municipal Securities Rulemaking Board (MSRB) Rule G-32. Amended Rule G-32, which became effective on June 1, 2009, consolidated the filing requirements of former Rule G-36 and the official statement delivery requirements of Rule G-32.

1. My firm filed with the Advertising Regulation Department a retail communication that promotes or recommends a private placement subject to the filing requirements of FINRA Rules 5122 or 5123. Do we now need to file the same communication with the Corporate Financing Department?

FINRA360 has yielded a number of organizational and operational changes aimed at making FINRA a more efficient, more effective regulator.

• Best Execution
• Direct Market Access Controls
• Short Sales

The Underwriter Financial Status Report is a monthly report designed to help firms evaluate the timeliness of financial disclosures made to EMMA, for issuances previously brought to market.   

The purpose of this report is to highlights issuances lacking current audited financial filings (LCF) and the lateness of these missing financial filings, based on their anticipated filing time line.

The report offers two alternate views:

FINRA evaluates 11 broad risk categories as a foundation to monitor and assess member firm¹ risk and inform our risk-based examination program. We are sharing this risk framework and risk assessment methodology as part of our FINRA Forward Initiative to provide greater transparency into our risk assessment processes to further empower member firm compliance.

Background

Input from our stakeholders indicated that they would welcome greater transparency regarding FINRA's budget, especially its financial projections and potential use of fines. FINRA for many years has published an Annual Financial Report that is prepared and audited in accordance with GAAP⁶ that describes the prior year's finances and operations.

Regulatory Obligations

Exchange Act Rule 15c3-3 (Customer Protection Rule) requires firms that maintain custody of customer securities and safeguard customer cash to segregate these assets from the firm’s proprietary business.

The Sales Practice Complaint Report is a quarterly report that displays trends in complaints with Sales Practice problem codes as reported to FINRA pursuant to FINRA Rule 4530. Note: prior to July 1, 2011, this report showed complaints reported pursuant to NASD Rule 3070(c) or NYSE Rule 351(d). For the purposes of the report, Sales Practice Complaints are evaluated against the number of representatives registered with the firm and the sales revenue of the firm.

The Financial Crimes Spotlight is a free webinar series hosted by FINRA’s Financial Intelligence Unit that focuses on how to detect and protect against emerging financial crimes and cyber-related threats and trends. 

These events are open to FINRA member firms only. Participants must provide their firm's broker-dealer number when registering.

Upcoming Webinars

Additional Webinars Coming Soon.

Stay informed about significant changes to FINRA's Membership Application Program (MAP). This webinar covers organizational and program updates, along with important information about Form NMA enhancements. Participants gain insight into the program's direction and understand key improvements to the application process.

This event is open to FINRA member firms only. Participants must provide their firm's broker-dealer number when registering.

FINRA Speakers:

Background

Another issue we are studying through the lens of FINRA360 is branch office inspections. The responsibility of firms to supervise their associated persons is a critical component of federal broker-dealer regulation. Over the last few years, and in comments we have recently received, firms have raised questions about the manner in which they must conduct internal inspections, particularly for those offices or locations with a limited number of associated persons or where only operational or limited supervisory functions take place.