Recently, the Financial Industry Regulatory Authority (“FINRA”) has requested the Securities and Exchange Commission (“SEC”) to approve amendments to Rules 2267 and 8312, which would increase disclosure requirements and promotion of their BrokerCheck program. In an attempt to facilitate and…
This week the president of FINRA’s office of dispute resolution, Linda Feinberg, announced the SRO will open its arbitration forum to registered investment advisers. The statement was made at the annual meeting of the Public Investors Arbitration Bar Association where…
FINRA recently published Regulatory Notice 12-25 to provide broker-dealers with additional guidance on the SRO’s new suitability rule, which took effect on July 9th. The new suitability standards under Rule 2111 were approved by the SEC in November, 2010. They were initially…
In 2011, FINRA reported 1,488 disciplinary actions, up from 1,310 in 2010. Also significant, fines in 2011 jumped 51% in 2011, up from $45 million in 2010 to $68 million last year. 2011 fines, however, were far lower than the…
Many opine the financial crisis was hastened by the financial industry’s use of byzantine and risky securities. FINRA recently released more specific guidance concerning supervision by broker dealers over the sale of complex products: Regulatory Notice 12-03, Complex Products: Heightened…
Last month, FINRA proposed Rule 5123 which, if adopted by the SEC, would have a huge impact on broker-dealers that offer or sell any security conducted in reliance on an exemption from registration under the Securities Act (i.e., a private…
A recent decision by the United States Court of Appeals for the Second Circuit found that the Financial Industry Regulatory Authority (“FINRA”) has no legal authority to bring an action in court to collect fines imposed on its members. This…
Jacko Law Group, P.C. (“JLG”) wrote a Legal Tip titled FINRA Rule 5131 – How It Impacts Broker-dealers And Private Funds in July, 2011.… Read More
Jacko Law Group, P.C. (“JLG”) wrote a Legal Tip titled The Sec Approves New, Expanded Rules On Know Your Customer And Suitability in January, 2011.… Read More