Guidance

Technology Based Innovations for Regulatory Compliance in the Securities Industry outlines recent regulatory technology (RegTech) developments within the securities industry and potential opportunities and implications these technologies may have for broker-dealers.

A resource where small broker-dealer firms can get help navigating FINRA’s systems and resources.

As part of our ongoing efforts to provide support for small firms, and in response to the FINRA Special Notice on Engagement and FINRA360, FINRA developed the Small Firm Helpline to assist broker-dealers that need general help navigating FINRA’s systems and resources.

We launched FINRA360 in March 2017 with one overarching objective: to ensure that FINRA is operating as the most effective and efficient self-regulatory organization (SRO) we can be.

Large Options Positions Report (LOPR) – Listed
FINRA is providing Listed LOPR exceptions from FINRA’s Listed LOPR Audit Exception Report. The LOPR Listed report contains three types of exceptions for exchange-traded options: The Effective Date, LOPR Reporting Exceptions and In-Concert Exceptions.

On May 14, 2018, amendments to FINRA Rule 2232 will take effect, which require a member firm to disclose on the customer confirmation the amount of mark-up or mark-down it applies for certain trades with retail customers in corporate or agency debt securities. Disclosed mark-ups must be calculated consistent with existing Rule 2121.

Customers who pursue civil remedies or arbitration claims against investment professionals cannot always recover on their judgments or awards. Customers encounter this challenge across the forums in which they may pursue action— whether state or federal court, a dispute resolution forum administered by a regulator, a private arbitration venue, or otherwise — and across the range of financial services they may use.

Firms and associated persons are required to provide complete, up-to-date and accurate information on registration forms (e.g., Form BD, Form U4, Form U5 and other forms) (“Filings”). Some of the information required to complete these Filings is personal information. Please review the guidance provided on this page on how to protect this information.

Representations under Rules 5130 and 5131 may be obtained electronically through a mobile application, provided that the method for obtaining representations complies with SEC and FINRA guidance regarding the use of electronic communications, and the representations satisfy the requirements set forth in Rules 5130 and 5131.

December 11, 2017

Lawrence Cohen
Of Counsel
Gordon Rees Scully Mansukhani, LLP
111 W. Monroe Street, Suite 1600
Phoenix, AZ 85003

1. What is the preferred order for completing the program?

It is recommended to complete Week I before taking Week II because the second week’s curriculum builds on the first week, but there is no requirement to take the program in this order.

2. Does the program need to be completed within a specified timeframe?

FINRA observed some instances in which firms have had difficulty meeting various aspects of their obligations under Regulation SHO and relevant FINRA rules:

Best execution is a significant investor protection requirement that essentially obligates a broker-dealer to exercise reasonable care to execute a customer's order in a way to obtain the most adv

November 2017

The Trading & Financial Compliance Examinations (TFCE) section of the Market Regulation Department (Market Regulation) at the Financial Industry Regulatory Authority, Inc. (FINRA) is conducting a review of [FIRM] concerning the impact the receipt of order routing inducements, such as payment for order flow and maker-taker rebates, has on the Firm’s [equities and options] order routing practices and decisions. As part of this review, TFCE requests that the Firm provide complete and detailed responses to the following:

TRACE Reporting Timeframes and Transparency Protocols¹