WASHINGTON — The Financial Industry Regulatory Authority (FINRA) announced today that it has ordered Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC to pay more than $3.4 million in restitution to affected customers for unsuitable recommendations of volatility-linked exchange-traded products (ETPs) and related supervisory failures. FINRA found that between July
February 1, 2001Many NASD members have inquired about OATS Written Supervisory Procedures and their responsibilities when using a Reporting Agent, such as a clearing firm or a service bureau, to transmit their OATS data to NASD Regulation.In the December 4, 2000 edition of The OATS Report, an article entitled OATS Written Supervisory Procedures provided guidance on what should be included by
FINRA Reminds Firms of Sales Practice Obligations for Volatility-Linked Exchange-Traded Products
June 29, 2001
To ensure OATS works effectively, order data must be reported accurately and timely. The NASD Market Regulation Department recommends the following guidelines to aid member firms in their responsibility to properly report order data to OATS.
Ten Preventive Compliance Tips:
Review the OATS Web interface daily to ensure all files have been accepted.
Review the Web Site daily
June 29, 2001
Market Regulation is in the process of implementing a series of new sweeps to help ensure member firm compliance with NASD Marketplace Rules 6950-6957 ("the OATS Rules"). The new sweeps are summarized below. Any questions or concerns regarding these sweeps should be directed to the OATS Help Desk at 1-800-321-NASD.
Order/Trade Matching Sweep
The Order/Trade Matching
June 21, 2002
NASD OATS staff is adjusting its compliance sweep process by combining several current sweep processes into one. The new sweep will be known as the OATS Integrated Sweep and will commence with the 1st Quarter 2002 OATS data. The integrated sweep process has been designed to make regulatory reviews and inquiries more comprehensive and efficient. The integrated sweep allows for
Find Advertising Regulation guidance on what and when to file that is related to new member firms and existing member firms.
The Advertising Regulation Department (the “Department”) protects investors by helping to ensure that broker-dealers’ communications with the public are fair, balanced, and not misleading. The Department reviews communications such as websites, search advertisements, brochures, commercials, and print communications for compliance with applicable FINRA, SEC, MSRB, and SIPC rules through four key
February 10, 2004
NASD member firms reporting to OATS are required under NASD Conduct Rule 3010 to maintain and enforce written supervisory procedures related to OATS.
NASD has published articles in the December 2000, February 2001 and January 2004 OATS Reports to provide guidance on what member firms should include in written supervisory procedures.
Member firms are still required to have
February 10, 2004
NASD member firms may contractually arrange for another member firm or non-member entity to transmit order events to OATS on their behalf. Such arrangements must clearly specify the responsibilities of each party with respect to OATS reporting.
As required under NASD Rule 6955(c), Reporting Members using a third party to record and transmit their OATS data must have a
