Rule 4111 Compliance Tool – Lists of Expelled FirmsFINRA Rule 4111 (Restricted Firm Obligations) requires member firms that are identified as Restricted Firms to deposit cash or qualified securities in a segregated, restricted account; adhere to specified conditions or restrictions; or comply with a combination of such obligations. Rule 4111 establishes a multi-step, annual process through which
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Senior ManagementLegal & ComplianceMutual FundSyndicateTraining
Executive Summary
Article III, Section 26 of the Rules of Fair Practice prohibits members from accepting compensation from an underwriter when selling its mutual fund unless such compensation is disclosed in the fund's prospectus. To the extent investment companies are not providing adequate
The availability of complex products and options can potentially expand the investment opportunities for retail investors and, if properly understood, offer favorable investment outcomes (e.g., enhancing returns, limiting losses or improving diversification). However, important regulatory concerns arise when investors trade complex products without understanding their unique characteristics and
The Best Execution topic of the 2024 FINRA Annual Regulatory Oversight Report (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) regulatory obligations and related considerations, (2) findings and effective practices, and (3) additional resources.
UPDATE 10/19/2018: During the week of Oct. 8, 2018, exceptional market volatility again produced record numbers of electronic messages processed by FINRA, including the three highest-volume days in history:
The 107 billion messages processed on Oct. 10 topped the previous record of 101 billion set on March 28, 2018.
The very next day – Oct. 11 – saw a significantly higher record set: 135
The Reg BI and Form CRS section of the 2022 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.
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Legal & ComplianceOperationsRegistrationTraining
*These are suggested departments only. Others may be appropriate for your firm.
The Securities and Exchange Commission recently approved revisions to several of the NASD's qualification examinations. These changes become effective January 1, 1990. The revised examinations include the following:
Investment
Exemptive relief is granted based on representations that: the contribution pre-dated the contributor’s designation as an MFP; the MFP attempted to obtain a refund of the contribution; the Firm identified the contribution through its supervisory processes during its screening process when Name was being considered for a role that would cause her to be designated as an MFP; and the MFP will be prohibited from soliciting or otherwise being involved in municipal securities business with the City for at least two years from the date of the Contribution.
FINRA hosted a Regulation Best Interest (Reg BI) conference on Dec.18, 2019 in Washington, D.C. for firms to discuss best practices and approaches. Approximately 500 compliance officers and other industry participants attended the one-day event focused on assisting firms as they gear up for the June 30, 2020 compliance date for the SEC’s Reg BI and Form CRS.Reg BI establishes a "best
Before investing in mutual funds, it is important that you understand the sales charges, expenses, and management fees that you will be charged, as well as the breakpoint discounts to which you may be entitled.
