In its annual Risk Monitoring and Examination Priorities letter, FINRA identified areas of focus for 2020.
News & Insights
The SEC Division of Trading and Markets granted limited exemptive relief to a broker-dealer from SEC rules regarding the custody of client cash intended for the purchase of mutual fund shares.
The CFTC Division of Swap Dealer and Intermediary Oversight issued guidance on the practical implementation of no-action relief for FCM investments in money market funds.
The SEC Division of Trading and Markets granted "introducing" broker-dealers no-action relief in order to relieve certain administrative and operational burdens during the customer account opening process.
The SEC's Division of Investment Management has issued a no-action letter concerning Investment Advisers Act Rule 206(4)-2 ("Custody of Funds or Securities of Clients by Investment Advisers"). The "Custody Rule" indirectly requires that auditors who perform certain functions for SEC-regulated entities be subject to regular inspection by the Public Company Accounting Oversight Board ("PCAOB"). According to the SEC letter, however, the PCAOB has yet to adopt a permanent program for such inspections. Therefore, the SEC previously issued a no-action letter stating that the SEC would not take