Under the federal securities laws, it is generally the case that, absent an exemption, only registered broker-dealers may receive transaction-based compensation in connection with a securities transaction. FINRA Rule ("Payments to Unregistered Persons") prohibits such payments by FINRA members to unregistered broker-dealers except where such payment would otherwise be permissible under the federal securities laws. As is typically the case under securities rules, FINRA Rule …
The AWC serves as a reminder not only of the importance of keeping records, but of the importance of keeping accurate records. Accurate books and records form the bedrock upon which examinations and inspections are based. As a result, substantive inaccuracies in books and records are generally taken seriously by FINRA and the SEC and, not infrequently, result in enforcement actions. This is true even where, as in the current AWC, the number of inaccurately recorded transactions is small.…
This AWC points out the importance of firms having procedures in place to ensure that confidentiality agreements, both in the context of settlement agreements and more generally, comply with FINRA rules. Firms should also keep in mind SEA ("Staff communications with individuals reporting possible securities law violations"). The Rule, which relates to whistleblower incentives and protections, prohibits any person from taking any action to impede any individual from communicating…
It is difficult to know what to make of the lack of coordination between FINRA and state regulators with respect to Residential Supervisory Locations and FINRA Rule 3110.19 as well as why FINRA is publishing this notice now rather than at the time FINRA Rule 3110.19 was approved. In any event, the notice highlights the difficulty of coordinating regulatory changes in areas where FINRA rules and state regulations overlap.
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Under the federal securities laws, it is generally the case that, absent an exemption, only registered broker-dealers may receive transaction-based compensation in connection with a securities transaction. FINRA Rule ("Payments to Unregistered Persons") prohibits such payments by FINRA members to unregistered broker-dealers except where such payment would otherwise be permissible under the federal securities laws. As is typically the case under securities rules, FINRA Rule …
The AWC serves as a reminder not only of the importance of keeping records, but of the importance of keeping accurate records. Accurate books and records form the bedrock upon which examinations and inspections are based. As a result, substantive inaccuracies in books and records are generally taken seriously by FINRA and the SEC and, not infrequently, result in enforcement actions. This is true even where, as in the current AWC, the number of inaccurately recorded transactions is small.…
This AWC points out the importance of firms having procedures in place to ensure that confidentiality agreements, both in the context of settlement agreements and more generally, comply with FINRA rules. Firms should also keep in mind SEA ("Staff communications with individuals reporting possible securities law violations"). The Rule, which relates to whistleblower incentives and protections, prohibits any person from taking any action to impede any individual from communicating…
It is difficult to know what to make of the lack of coordination between FINRA and state regulators with respect to Residential Supervisory Locations and FINRA Rule 3110.19 as well as why FINRA is publishing this notice now rather than at the time FINRA Rule 3110.19 was approved. In any event, the notice highlights the difficulty of coordinating regulatory changes in areas where FINRA rules and state regulations overlap.