The new exchange is novel in that, if approved, it would only list companies that comply with the exchange's "Green Governance Standards." These standards "will be designed to provide transparency and accountability for listed companies' green and sustainability promises and signal to investors focused on green practices that listed companies are credible." In other words, a listing on the new exchange would operate as a seal of approval.
The referenced enhancement to Form BR applies only to initial filings of Form BR related to a newly established RSL location. The enhancement allows the member firm, when designating a new RSL location, to de-select FINRA.
Future enhancements will allow firms to amend existing Form BRs to account for the RSL designation. FINRA also reminds firms that they should not close/withdraw a Form BR to account for the RSL designation in any jurisdiction or with any SRO that has branch…
The bringing of an enforcement action by FINRA against the firm reflects not only the documentation failures stated in the AWC but also the firm's failure to follow up on the information known to it and take meaningful action in response thereto.
As to documentation, it is hard to overstate the importance that FINRA places on member firms creating comprehensive, written documentation with respect to their handling of compliance issues. This is particularly true where specific…
This AWC is a reminder that all securities products sold by a firm's representatives must be approved by the firm and that the firm must have a process in place to ensure compliance with such requirement. In this matter, FINRA felt that the firm should have had a system in place to flag and investigate transfer by multiple customers of large sums by check or wire to the same external party from an account with the firm.
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The new exchange is novel in that, if approved, it would only list companies that comply with the exchange's "Green Governance Standards." These standards "will be designed to provide transparency and accountability for listed companies' green and sustainability promises and signal to investors focused on green practices that listed companies are credible." In other words, a listing on the new exchange would operate as a seal of approval.
This approach likely reflects the fact…
The referenced enhancement to Form BR applies only to initial filings of Form BR related to a newly established RSL location. The enhancement allows the member firm, when designating a new RSL location, to de-select FINRA.
Future enhancements will allow firms to amend existing Form BRs to account for the RSL designation. FINRA also reminds firms that they should not close/withdraw a Form BR to account for the RSL designation in any jurisdiction or with any SRO that has branch…
The bringing of an enforcement action by FINRA against the firm reflects not only the documentation failures stated in the AWC but also the firm's failure to follow up on the information known to it and take meaningful action in response thereto.
As to documentation, it is hard to overstate the importance that FINRA places on member firms creating comprehensive, written documentation with respect to their handling of compliance issues. This is particularly true where specific…
This AWC is a reminder that all securities products sold by a firm's representatives must be approved by the firm and that the firm must have a process in place to ensure compliance with such requirement. In this matter, FINRA felt that the firm should have had a system in place to flag and investigate transfer by multiple customers of large sums by check or wire to the same external party from an account with the firm.