FINRA Podcast Highlights: May 2015 Monthly Recap of FINRA Notices and Selected SEC Rules

FINRA released a podcast summarizing the latest FINRA notices, compliance resources, and news from May 2015.

The podcast highlights recent regulatory notices, including:

• Notice 15-13, which requests comments on FINRA-proposed rules to provide a trading fee exemption for proprietary trading firms. Comments close on June 19, 2015;
• Notice 15-14, which outlines the recently SEC-approved TRACE rule amendments that require firms to identify transactions with non-member affiliates in TRACE trade reports, and requires firms to separately identify transactions with non-member affiliates within the same day. The amendment becomes effective on November 2, 2015;
• Notice 15-15, which describes the National Adjudicatory Council's revisions to its sanctions guidelines related to misrepresentations and suitability, which are effective immediately;
• Notice 15-16, which requests comments on a FINRA rule proposal that amends the Communications with the Public Rules. The proposed amendments would: (i) narrow the new-member-firm filing window, (ii) simplify filing requirements related to registered investment, investment-analysis tools and previously filed templates, and (iii) revise content and disclosure requirements for bond fund volatility ratings. Comments on the proposal must be submitted by July 2, 2015;
• Notice 15-17, which summarizes FINRA's updated QAmp;A that supplements previous guidance regarding communications with the public;
• Notice 15-18, which outlines the recently SEC-approved amendments to FINRA's Arbitration Codes to revise the definitions of non-public and public arbitrator. The amendments become effective on June 26, 2015; and
• Notice 15-19, which requests comment on a FINRA proposal that would require firms to deliver an educational communication to a transferring representative's customers when hiring the representative. Comments must be submitted by July 13, 2015.

The podcast also highlights, among other things, additional SEC-approved rulemakings, including: (i) an approved amendment to FINRA's Customer Account Statements Rule, which requires firms to add account statements per-share estimated values for certain types of securities, and (ii) a related amendment to FINRA's Direct Participation Program Rule that prevent firms from participating in direct participation programs or real estate investment trusts unless the general partner or sponsor will disclose a per-share estimated value on each annual report.

See: Transcript of FINRA Podcast; Listen to Podcast.Related news: FINRA Requests Comment on Proposed Exemption from Trading Activity Fee for Proprietary Trading Firms (Regulatory Notice 15-13) (with Lofchie Comment) (May 6, 2015); SEC Approves Amendments to Require Firms to Identify Transactions with Nonmember Affiliates in TRACE Trade Reports (FINRA Reg. Notice 15-14) (May 12, 2015); National Adjudicatory Council Revises Sanction Guidelines for Fraudulent Conduct (FINRA Reg. Notice 15-15) (May 12, 2015); FINRA Requests Comments on Amendments to Rules Governing Communications with the Public (FINRA Reg. Notice 15-16) (with Lofchie Comment) (May 18, 2015); FINRA Issues Guidance on Advertising and Communications (FINRA Reg. Notice 15-17) (with Lofchie YouTube Selection) (May 22, 2015); FINRA Issues Notice Regarding SEC's Approval of Amendments to Arbitration Codes (FINRA Reg. Notice 15-18) (May 27, 2015); FINRA Requests Comments on Proposal Concerning Recruitment Practices (FINRA Reg. Notice 15-19) (May 27, 2015).