Here are issues FSI has recently been involved in at FINRA:
FSI has learned that FINRA has withdrawn its proposed rule with the SEC that would have required financial advisors using social media to post a link to BrokerCheck on social media sites.
The Financial Services Institute (FSI) has issued the following statement on FINRA's recruitment compensation disclosure proposal...
On December 10, 2012, FINRA issued Regulatory Notice 12-55, which provides updated guidance on FINRA’s recently revised Suitability Rule, FINRA Rule 2111. The Notice addresses issues discussed in a previous FINRA notice, Regulatory Notice 12-25, that remained ambiguous, notably, the scope of the terms “customer” and “investment strategy”. The notice further describes the suitability obligations for hold recommendations, non-security investments, and broker-dealers’ supervisory responsibilities. FSI has been urging FINRA to provide additional clarity on these areas since the rule was originally proposed, and applaud FINRA for releasing further guidance.
September 24, 2012
The Financial Services Institute (FSI) today announced another advocacy victory following the most recent FINRA Board of Governors Meeting when amendments to the BrokerCheck Disclosures did not include making financial advisors’ test scores for tests taken on a pass/fail basis public on the system.
May 21, 2012
On May 21, FSI submitted a comment letter supporting FINRA's proposed rules for expungement procedures.
FINRA Provides Important Changes to Rule Regarding Communications with the Public Extended Implementation Period Will Allow a Smooth Transition to New Requirements We are pleased to report that FINRA has responded to our concerns regarding a proposedrule that would make...
We are pleased to report that FINRA has responded to concerns we raised regarding a proposed rule that would make significant changes with respect to communications with the public.
FINRA recently announced its nomination and election procedures to fill vacancies on FINRA District Committees.
On August 24, 2011, FSI submitted a comment letter to the SEC in response to FINRA’s proposed changes to its rules regarding communications with the public.
FSI’s goal is to create a healthier, business-friendly regulatory environment for you to thrive in. In that vein, constructive engagement with FINRA and active participation by FSI members on FINRA District Committees helps ensure that independent broker-dealer model flourishes into the future.
On June 10, The Financial Industry Regulatory Authority (FINRA) filed with the Securities and Exchange Commission (SEC) for approval proposed changes to existing supervision rules. The proposal seeks to consolidate NASD and NYSE supervision rules, classify previously issued guidance and adopt core changes to the supervision rules.
On May 31, FSI submitted a comment letter to the Securities Exchange Commission (SEC) on FINRA’s proposed changes to adopt NASD Rule 2830 as FINRA Rule 2341 (Proposed Rule).
On May 13, FSI submitted a comment letter to FINRA in response to Regulatory Notice 11-14, which codifies existing FINRA guidance related to third-party service providers.
On March 28, 2011, FSI submitted a comment letter to FINRA related to Regulatory Notice 11-08 (RN 11-08).
On Tuesday, March 15, 2011, FSI submitted a comment letter to the Financial Industry Regulatory Authority (FINRA) on a proposal to amend FINRA Rule 5122 related to the private placement of securities.
FSI submitted a comment letter to SEC in response to FINRA’s proposed adoption of new suitability and “Know Your Customer” (KYC) Rules. We previously submitted a comment letter in response to Regulatory Notice 09-25...
FSI submitted a comment letter to SEC in response to FINRA’s amended Outside Business Activities (OBA) rule proposal. The Proposed Amendment would require that, upon receipt of a OBA notice from a registered representative, a firm shall consider...
On September 15, 2010, FSI submitted a comment letter in response to FINRA's proposal to adopt FINRA Rule 4530 in the Consolidated FINRA Rulebook.
On May 26, 2010, FINRA Published Regulatory Notice 10-25 seeking comments on its proposal to expand FINRA’s registration requirements to include individuals who are engaged in, or supervising, activities relating to sales and trading support, and that handle customer assets. On June 30, 2010, FSI submitted a comment letter in response to this Regulatory Notice.
On May 19, 2010, FSI filed a comment letter with the SEC on FINRA’s proposed amendments to FINRA Rule 8312 concerning FINRA’s BrokerCheck Disclosures.
The annual meeting of FINRA firms will take place on or about Monday, August 2, 2010, to elect individuals to fill the seven Elected Governor seats on the FINRA Board of Governors. There are three Small Firm Governor seats, one Mid-Size Firm Governor seat, and three Large Firm Governor seats up for election.
On September 8, 2009, FSI submitted a comment letter supporting FINRA’s proposal to streamline the requirements of the bank broker-dealer rule. The proposal was designed to ensure uniformity between FINRA requirements and the relevant provisions of the Gramm-Leach Bliley Act of 1999 (GLB) and Regulation R.
The Proposed Rules are intended to streamline the standards of review for new and continuing membership applications (CMA), clarify certain administrative aspects of the Membership Application Process (MAP), update or eliminate outdated terminology, require certain additional information about the applicant, and incorporate certain provisions from the Incorporated NYSE membership rules.
FSI submitted a comment letter in response that generally supported the rule proposal, but suggested several improvements to address the complexity of the Retained Associate’s ten-year clock, the circumstances under which an individual may act as a principal before passing the required registration exams, the Chief Compliance Officer examination requirement, and other issues of concern to our members.
On November 12, 2009, FINRA published Regulatory Notice 09-63 seeking comments on its proposal to amend its rules governing discretionary accounts and transactions. On December 28, 2009, FSI submitted a comment letter in response to Regulatory Notice 09-63 which generally supported the Proposed Rule.
On September 21, 2009, FINRA published Regulatory Notice 09-55 seeking comments on its proposal to rework its rules governing communications with the public (Proposed Rule). The Proposed Rule seeks to streamline the existing advertising rules by reducing the number of communications categories from six to three.
On June 17, 2009, FINRA published Regulatory Notice 09-34 seeking comment on its proposal to incorporate and replace NASD Rule 2830 regarding the distribution and sale of investment company securities with new FINRA Rule 2341. The proposed rule would require firms to make new disclosures to investors regarding the receipt of cash compensation in connection with the sale of investment company securities.
The Financial Services Institute and the Financial Services Roundtable have sent a joint letter to FINRA expressing concerns with certain aspects of recent FINRA television and radio ads. The main focus of FINRA’s new ads appears to be to inform investors of FINRA’s existence and role in protecting investors.
As part of FINRA’s ongoing rulebook consolidation process, FINRA proposed a new rule last year to prevent the dissemination of rumors intended to manipulate stock prices. The proposal combines aspects of FINRA Rule 6140 and Incorporated NYSE Rule 435(5) and extends the prohibitions on the origination and circulation of rumors to cover all securities.
FINRA has released a new rule proposal that consolidates the existing rules governing suitability and the know-your-customer obligations into a new FINRA Rule 2111 (Proposed Rule).
On April 21, FINRA published a proposal that would require financial advisors to obtain written consent to open an account at another firm and require their broker-dealer to receive both confirmations and statements from the executing broker-dealer.
On May 5, FINRA filed with the SEC a letter responding to the comments provided by FSI, over 1,000 of our members, and other industry participants. Shortly thereafter, FINRA filed two amendments to their proposal. On May 13, the SEC approved FINRA's final proposal to amend Forms U4 and U5. FINRA’s final rule proposal responded by making many of the changes suggested by FSI.
A FINRA proposal that amends the principal review requirements of FINRA Rule 2821, commonly known as the Variable Annuity rule, has been approved by the SEC. The approved amendments benefit financial advisors and broker-dealer firms by modifying the starting point for the seven-business-day principal review period from the date the client signed the application to the date the firm's OSJ receives the application.
FSI is pleased to announce that all 28 FSI members that were selected as nominees by FINRA District Nominating Committees were elected in their districts. With the addition of the newly elected nominees, FSI members now make up more than one-quarter of all FINRA District Committees
FINRA recently requested comment on a proposal relating to FINRA’s rule on best execution and interpositioning. The proposed rule simplifies and clarifies the requirements in several specific instances.
On January 6, 2009, FINRA requested comment on a proposal relating to information and data reporting and filing requirements. The proposed rule is intended to establish a new information reporting requirement; require broker-dealer firms to report additional applicable contact information; and consolidate, streamline, and modify into one rule several separate reporting and filing requirements.
Mari J. Buechner, President & CEO of Coordinated Capital Securities in Madison, Wisconsin, has been elected by FINRA’s small firm members to the vacant Small Firm seat on the FINRA Board of Governors. FSI strongly endorsed Mari’s nomination for the open seat and concurs with the judgment of her industry peers that she will be a strong and credible advocate for small firms.
The SEC approved FINRA’s proposed amendment to NASD Rules 2210 and 2211 which allows financial advisors and firms to distribute market letters to retail customers without prior approval by a registered principal.
We are pleased to announce that Carolyn May, Chief Compliance Officer of Simmons First Investment Group, Inc., has been elected to FINRA's Small Firm Advisory Board (SFAB). Carolyn will serve along side nine other board members, representing the South Region.
FINRA has released four rule proposals for consolidating NASD and NYSE rules for the new FINRA rulebook. The four areas covered by the proposals are Financial Responsibility, Supervision and Supervisory Controls, Books and Records, and Investor Education and Protection. The proposals are preliminary and still must be filed with and adopted by the SEC before they can take effect.
FSI is pleased to announce that all 36 FSI members that were selected as nominees by FINRA District Nominating Committees were elected in their districts. Last February, FSI members responded in record numbers to our call to action by submitting over 90 nominees for service on one of the 11 FINRA District Committees.
We are pleased to announce that Mari Buechner, President, CEO, & COO of Coordinated Capital Securities, has been appointed to FINRA's Small Firm Advisory Board (SFAB). Mari has been affiliated with Coordinated Capital since 1987 and has experience in all aspects of the industry, including operations, administration and compliance.
On May 22, 2007, the SEC approved amendments to MSRB Rule G-27. These amendments were designed to incorporate many of the requirements of NASD Conduct Rules 3010 and 3012 in order to promote regulatory consistency and specifically apply these rules to the municipal securities activities of broker-dealers.
In NtM 07-12, the NASD proposed an amendment to Conduct Rule 3010(g) which would have eliminated the definition of an Office of Supervisory Jurisdiction (OSJ). The term would have been replaced by definitions for a "supervisory branch office," a "limited supervisory branch office," a "non-supervisory branch office" and "non-branch office."
ATLANTA, GA . . . December 13, 2006 . . . The Financial Services Institute announced today that it is endorsing the proposed merger of the regulatory functions of NASD and NYSE Regulation into a single, unified self-regulatory organization for the securities industry.
David Bellaire, Esq.Executive Vice President & General Counsel 202 803-6061Email David