FINRA provided FAQs on how broker-dealers may comply with FINRA disclosure requirements when communicating with customers through electronic media.
News & Insights
FINRA stated that marketing materials should reflect the fact that many private placements are either illiquid or speculative in nature, and should "balance claims of these investments' benefits by disclosing these risks."
FINRA published new guidance on various issues stemming from amendments made to FINRA rules on margin requirements for "Covered Agency Transactions."
FINRA reminded broker-dealers that OTC transactions in TRACE-eligible securities are subject to TRACE reporting even if the security is listed on a national securities exchange. The exemption from TRACE reporting for listed bonds applies only where the transaction is executed on, and reported to, a national securities exchange and the transaction information is disseminated publicly; the exemption does not extend to OTC transactions in those bonds.
The SEC initiated proceedings to determine whether to approve an amended version of a FINRA proposal that would establish margin requirements for "to-be-announced" transactions.