RN 11-39 August 18, 2011 FINRA published a regulatory notice responding to further questions raised after it published guidance in early 2010 on the use of social media in communications with the public (RN 10-06). In particular, this notice addresses the following issues relating to social media websites: (1) recordkeeping obligations; (2) supervisory review; (3) links to third-party websites; and (4) data fees. For more information about this document, you may contact one of the following Cadwalader attorneys: Steven D. Lofchie; Glen P. Barrentine. Cross References: FINRA RN 10-06 (Guidance
FINRA announced that it has fined Rodman Renshaw LLC $315,000 for supervisory and other violations related to the interaction between the firm's research and investment banking functions. The firm's supervisory system was found to be deficient, resulting in a breakdown of the barriers required to be imposed between research and investment banking, including research analysts be rewarded for soliciting investment banking transactions.
As part of the process of developing a new, consolidated rulebook, FINRA announced that it is requesting comment on proposed FINRA rules governing markups, markdowns, commissions and fees. FINRA initially sought comment on the proposed rules in Regulatory Notice 11-08. In response to the comments received, FINRA is proposing several changes to the proposed rules. These changes include, among other things, amendments to: (1) retain the 5% markup policy in NASD IM-2440-1 (Mark-Up Policy); (2) revise certain of the relevant factors used to determine the reasonableness of markups and commissions;
FINRA announced that it censured and fined Merrill Lynch Professional Clearing Corp. ("Merrill Lynch PRO") for violating Regulation SHO. Additionally, FINRA censured and fined the firm's affiliate for failing to establish, maintain and enforce supervisory systems and procedures related to Regulation SHO and other areas. FINRA found that Merrill Lynch PRO did not take any action to close out certain fail-to-deliver positions, and did not have systems and procedures in place to address the closeout requirements of Reg. SHO. Additionally, FINRA found that its affiliate's supervisory systems and
FINRA released the third and final podcast in a series on topics to consider when planning Firm Element training, as identified in the CE Council's Fall 2014 Firm Element Advisory. The podcast focused on topics including: new changes to Clearly Erroneous Execution Rules for SROs to address multi-day clearly erroneous events and transactions occurring during trading holds; additional certifications under FINRA information compliance rules, which now require firms to certify that they are not accepting payment from an issuer for publishing a quotation or acting as a market maker as outlined in