Additional Guidance on Reporting Requirements Under FINRA Rule 4530

FINRA RN 11-32

July 18, 2011

FINRA published an FAQ to guide firms on automated regulatory reporting pursuant to new FINRA Rule 4530, which became effective on July 1, 2011. The rule requires firms to report to FINRA certain specified events and quarterly statistical information on written customer complaints and to file with FINRA copies of certain criminal actions, civil complaints, and arbitration claims. In particular, the FAQ provides firms guidance on (i) reporting of internal conclusions as to rule violations; (ii) what it means for a violation to have potential "widespread" implications; (iii) what the phrase "multiple instances of any violative conduct" means; (iv) whether reporting under Rule 4530(b) can make a firm eligible to receive credit for "extraordinary cooperation; (v) the reporting of text messages and tweets as customer complaints; (vi) reporting of issues related to non-securities activities of brokers; and (vii) reporting of violations by former associated persons.

Cross References

FINRA RN 11-06 (announcing approval of 4530)

FINRA RN 11-10 (reminder of 4530 requirements)