FINRA Revises Portfolio Margining Risk Disclosure Statement and Written Acknowledgment for Customers Using Portfolio Margin Accounts
Update to Security Futures Risk Disclosure Statement and Supplement
FINRA poses several questions for firms to consider as they evaluate whether their supervisory systems are reasonably designed to address risks of their SPAC-related activities. These questions are based on FINRA’s observations to this point in our review. In addition, the Appendix notes additional guidance FINRA has provided regarding member firms’ relevant obligations.
INFORMATIONAL
SUGGESTED ROUTING
KEY TOPICS
Legal/Compliance Retail Senior Management
Hedge Funds Funds of Hedge Funds Suitability Due Diligence Internal Controls Supervision Training
Executive Summary
As a result of a recent review of members that sell hedge funds and registered products (closed-end funds) that invest in hedge funds ("funds of hedge funds"),
The Suitability for Retail Customers section of the 2018 Report on Exam Findings informs member firms’ compliance programs by describing recent findings and observations from FINRA’s examinations, and, in certain cases, also providing a summary of effective practices.
Summary
With the recent increase in the number of customers seeking to open brokerage accounts and trade options, FINRA reminds members of the requirements for determining whether to approve a customer to trade options. Regardless of whether the account is self-directed or options are being recommended, members must perform due diligence on the customer and collect information about the customer
GUIDANCE
Portfolio Margin Risk Disclosure Statement
SUGGESTED ROUTING
KEY TOPICS
Legal and Compliance
Margin
Operations
Senior Management
Margin Requirements
Options
Portfolio Margin
Portfolio Margin Risk Disclosure Statement
Rule 2520
Rule 2860
Executive Summary
As announced in Notice to Members (NTM) 07-11 (February 2007
FINRA has taken disciplinary actions against the following firms and individuals for violations of FINRA rules; federal securities laws, rules and regulations; and the rules of the Municipal Securities Rulemaking Board (MSRB).
SEC Approves Amendments to FINRA Rule 2360 (Options) and FINRA Rule 4210 (Margin Requirements) in Connection With Over-the-Counter Options Cleared by the OCC
GUIDANCE
Structured Products
SUGGESTED ROUTING
KEY TOPICS
Internal Audit
Legal and Compliance
Retail
Senior Management
Derivatives
Options
Structured Products
Structured Securities
Executive Summary
As a result of a recent review of members that sell structured
products, NASD staff is concerned that members may not be
fulfilling their sales practice obligations when selling
