FINRA has released its 10th Annual Regulatory and Examinations Priorities Letter, highlighting its 2015 regulatory focus. FINRA announced they will highly scrutinize certain product offerings including interest rate sensitive fixed income securities (long duration bonds, MBS, interest-only bond funds), variable annuities, liquid alts, and non-traded REITS. The FINRA examiners will focus on the implementation of the revised supervision rules including reviews of branch offices and OSJs and compliance testing. FINRA will analyze IRA rollovers, sales of private placements suitability, failure to offer required fund breakpoint discounts, and anti-money laundering procedures. Firms should also review their valuation procedures to ensure adequate net capital, their cybersecurity programs, and their order routing and best execution practices. Please click here to read the full release.
Wednesday, January 7, 2015
Tuesday, January 6, 2015
FINRA Amends and SEC adopts FINRA Rule 3110(e) Requiring Background Checks Starting in July
FINRA's rule requiring member firms to conduct a public records search to verify the accuracy and completeness of information on a Rep's Form U4 has been approved and goes into effect in July. The amended rule requires a public records search to be completed no later than 30 calendar days after the U4 is filed." The public records search must verify the name and address; search criminal, bankruptcy, and litigation records; investigate liens; and review business records. The rule only requires "a national search of reasonably available records." In addition, the rule requires a review of the individual’s U-5 if they have been registered previously. Please click here to read the full SEC release.
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