FINRA provided an update of its targeted exam (sweep) focusing on the social media practices firms use to acquire new customers and firms’ privacy notices with respect to customer nonpublic information.
News & Insights
A broker-dealer settled FINRA charges for (i) failing to disclose that various corporate and municipal bonds held by its customers were in default and (ii) failing to deliver a number of required disclosures to its customers.
A former registered representative settled FINRA charges for removing and retaining nonpublic personal information of about 1,300 customers of the broker-dealer for which he had worked.
FINRA will review (i) firms' customer acquisition practices that utilize social media channels, and (ii) firm compliance with related obligations to protect customer information.
FINRA's Office of Financial Innovation requested comment on the regulatory implications of cloud computing, a technology increasingly adopted by broker-dealers for the purposes of scaling operations, business continuity and launching products.