This settlement highlights the importance of robust compliance procedures governing the interaction between research analysts and investment banking personnel, particularly during the "solicitation period," in which an issuer determines which firms to include in the underwriting syndicate. The FINRA settlement agreements contain some useful insights into how FINRA interprets the applicable provisions of Rule 2711 and include the following:

Prohibition on participation by research…

By reopening comment on the issue of position limits, Chairman Massad is taking on an important issue of substance; one that matters both for the economy and for the reputation of the CFTC as an agency.

Before Chairman Massad took over, the CFTC had been inclined to adopt very burdensome position limit rules, despite the costs of compliance and even in the absence of substantive evidence that such rules would benefit the economy. The steadily rising price of energy provided popular…

This CFTC no-action letter provides long-awaited relief from CTA registration for family offices by addressing the regulatory gap left by CFTC Letter 12-37, which provided them with CPO – but not CTA – registration relief. The latest letter rounds out the "exempt" status of family offices, which are excluded from investment adviser registration with the SEC pursuant to Rule 202(a)(11)(G)-1 under the Advisers Act, and which may claim CPO and CTA registration relief pursuant to CFTC No-Action…

This is a significant enforcement action in terms of both the severity of the fine imposed on Citi by FINRA and the lessons to be learned by other firms, as discussed below. Firms should consider these issues in light of the proposed new debt and equity research rules that FINRA filed with the SEC last week, which place an overarching obligation on firms to adopt and implement written policies and procedures to "identify and effectively manage conflicts of interest" arising from firms'…