FINRA Podcast Recaps Monthly Activities

FINRA released a monthly recap podcast that summarized its latest notices, compliance resources and news from November 2015.

The podcast covers the following recent developments:

Notices

• Effective November 30, 2015, FINRA will require the electronic submission of subordination approval requests (FINRA Reg. Notice 15-42).
• FINRA filed a rule with the SEC for authority to designate firms for mandatory participation and FINRA's business continuity and disaster recovery testing as required by Regulation SCI. The rule also sets up standards for the annual testing (FINRA Reg. Notice 15-43).
• FINRA and other U.S. members of the Intermarket Surveillance Group extended the effective date for certain data elements for electronic blue sheets to November 1, 2017. The extension is consistent with exemptive relief the SEC granted (FINRA Reg. Notice 15-44).
• The SEC approved FINRA's proposal to establish a registration category and qualification examination requirement for securities traders and securities trader principals in the Series 57 Exam, starting January 4, 2016 (FINRA Reg. Notice 15-45).
• FINRA issued guidance on best execution in equity, options and fixed income markets (FINRA Reg. Notice 15-46).
• The SEC approved amendments to require firms to add a "no remuneration" indicator to trace trade reports, which go into effect May 23, 2016 (FINRA Reg. Notice 15-47).
• The SEC also approved amendments to publish over-the-counter equity volume executed outside alternative trading systems, which will be available beginning April 18, 2016 on FINRA's website (FINRA Reg. Notice 15-48).
• The SEC also approved changes to reduce the waiting period for the release of details reported on Form U5 through broker check from 15 days to three business days, which will be effective on December 12, 2015 (FINRA Reg. Notice 15-49).
• Starting January 4, the Regulatory Element Program will be available online for the S101, and FINRA's revising the program to include a self-selection module based on job function (November 4, 2015 FINRA Information Notice).
• FINRA reminded firms there was an earlier exercise cut-off time for weekly options that expired the Friday after Thanksgiving because the exchanges closed early (FINRA November 24, 2015 Information Notice).

Resources for Firms

• December 18 is the payment deadline for preliminary renewal statements. This annual program simplifies the registration renewal process with FINRA and other participating regulators by requiring a single payment to FINRA.
• FINRA made available a new RSS feed for uniform practice code advisories.
• FINRA's executive vice president of market regulation, Thomas Gira, spoke about the national market system at Baruch College's financial markets conference.

Education

• FINRA released the first podcast in a four-part series about new research-conflicts rules.
• FINRA also released a new e-learning course about private-securities transactions, which guides supervisors through scenarios to help them learn to identify private-securities transactions.
• FINRA released a one-hour free webinar about small firms' cybersecurity, in which panelists from FINRA and small firms talk about best practices, the popular national institute of standards and technology framework, as well as recognizing and responding to cyber attacks.
• FINRA's 2016 cybersecurity conference will be held February 11 in New York City.
• FINRA's 2016 annual conference is set for May 23 through 25 in Washington, D.C.

FINRA News

• FINRA fined a retail brokerage firm for "significant failures" in required electronic records and email retention.
• FINRA also fined a global investment bank for violating regulation show and short‑interest reporting rules.
• FINRA filed a complaint charging a broker-dealer's president with fraud in connection with sales and subsequent extensions of more than $8 million of certificates of participation in five promissory notes.

Investor News

• FINRA released a new investor podcast about redistributing your portfolio, which talks about redistribution strategies and their upsides and downsides.
• FINRA issued an investment alert about fake IRS scams, which emphasizes how scammers use emotional manipulation strategies to steal money or personal information over the phone.