FINRA’s Post

FINRA Rule 3110 factors in nearly every one of its examinations. Understanding the rule's key components is the first step to achieving compliance.  https://lnkd.in/eJDHurK7 Oyster's experts understand the complexity of achieving compliance with FINRA Rule 3110 and provide the support you need.

Compliance with FINRA rules is crucial. With that in mind, here are some of the most commonly violated rules.

It is hard to believe that firms like this still exist. With most major firms giving away trading now, it makes no sense to have investments with a firm that charges commissions for trading, thus encouraging churning accounts to make commissions. It is good that FINRA took action, which should protect investors, but it is misleading to suggest that Reg BI enforcement somehow led to this outcome. These behaviors were always a violation of industry rules and regulations and Reg BI did absolutely nothing to impact FINRA's actions here. In my opinion, Reg BI remains a weak rule that is meant to give those who provide investment advice a free pass from acting as fiduciaries when they know investors all expect and deserve that standard of care. #investorprotection

📣 Breaking News: SEC Charges 11 Wall Street Firms over Recordkeeping Failures! Key Highlights: 📌 SEC has announced charges against 10 broker-dealers and one dually registered broker-dealer & investment adviser. 📌 The firms acknowledged their conduct violated federal securities laws and have agreed to penalties totaling $289 million. 📌 Key firms and penalties: Wells Fargo group: $125 million BNP Paribas & SG Americas: $35 million each BMO Capital & Mizuho Securities: $25 million each Houlihan Lokey: $15 million Moelis & Company & Wedbush Securities: $10 million each SMBC Nikko Securities: $9 million Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, emphasized the importance of firms self-reporting, cooperating, and remediating violations. The SEC's primary concern is the firms' failure to maintain and preserve electronic communications on personal devices, undermining regulatory oversight and potentially jeopardizing investor protections. In addition to financial penalties, the firms were ordered to cease future violations and retain independent compliance consultants to review and strengthen their internal electronic communication policies. Separate settlements were also announced by the Commodity Futures Trading Commission with several firms over related conduct. For the financial community, this serves as a potent reminder of the importance of stringent recordkeeping and compliance to uphold the integrity of our markets. 💼🔍 #SEC #WallStreet #Compliance #Finance #Recordkeeping #Enforcement https://lnkd.in/gCACqYu6

Among the SEC's charges announced today against 11 broker-dealers for failing to retain certain required records, was a single case involving a dual-registrant broker-dealer/investment adviser. The SEC's order against the dual registrant, however, does not shed any additional light on the question the industry has raised with the SEC: How broadly is the SEC interpreting an adviser's records retention requirements regarding recommendations, which differ from a broker-dealer's record retention requirements to maintain all business-related communications? While the SEC order restates the language of the rule applicable to investment advisers and includes a general allegation that off-channel communications related to recommendations to advisory clients, the examples the SEC order includes provide no additional information on this point. https://lnkd.in/gXiVc34F

Compliance with federal securities laws is essential to protect investors and maintain well-functioning markets. The SEC has taken strong enforcement actions, with 30 cases and over $1.5 billion in penalties to date. While some have taken heed and improved their policies, today's actions serve as a reminder that many still have not. Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, urges broker-dealers and investment advisers to take this message seriously and prioritize compliance with books and records requirements. #InvestorProtection #SEC #EnforcementActions #BizComGlobal

New Blog Alert! 📢 Stay ahead in compliance with our latest blog post, "Impact of FINRA SEA Rule 17A-4 on Financial Institutions". Learn how this crucial regulation affects record retention and storage, ensuring transparency and integrity in the financial sector. Dive into the details: ✅ What is FINRA? ✅ FINRA Roles and Responsibilities ✅ Impact on Financial Industry ✅ Understanding SEA Rule 17A-4 ✅ Who Needs to Comply? https://lnkd.in/euA9ZqF8 #FINRA #Compliance #FinancialRegulations #SEA17A4 #FinancialInstitutions #ASC

What is SEC ? The Securities and Exchange Commission (SEC) plays a crucial role in the financial markets, ensuring fairness and transparency. Let's explore what the SEC is, why it matters, and how it impacts investors and companies. What is the SEC? The SEC is a U.S. government agency established in 1934 by the Securities Exchange Act. Its primary mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. In simple terms, the SEC ensures that the financial markets operate smoothly and that investors are treated fairly. Key Functions of the SEC Protecting Investors: The SEC’s top priority is to safeguard investors from fraudulent and manipulative practices. It ensures that investors have access to essential information about the securities they buy or sell. Maintaining Fair Markets: The SEC works to maintain fair and efficient markets. This means making sure that all market participants, big or small, operate on a level playing field. Facilitating Capital Formation: The SEC helps companies raise money by selling shares to the public. This is crucial for business growth and economic development. How Does the SEC Operate? Registration of Securities: Companies that want to sell their shares to the public must register their securities with the SEC. This involves providing detailed information about the company’s business, financial condition, and the risks involved in investing in the company. Regulating Securities Markets: The SEC oversees key participants in the securities world, including securities exchanges, brokers and dealers, investment advisors, and mutual funds. It ensures these entities comply with the rules and regulations designed to protect investors. Enforcement Actions: The SEC has the authority to enforce securities laws. It can bring civil enforcement actions against individuals and companies that violate these laws. This might involve fraud, insider trading, or other misconduct. Why is the SEC Important? Investor Confidence: By enforcing laws and regulations, the SEC helps maintain investor confidence in the integrity of the securities markets. This confidence is vital for the proper functioning of the economy. Transparency and Disclosure: The SEC requires companies to disclose important financial information, allowing investors to make informed decisions. This transparency helps prevent fraud and ensures that all investors have access to the same information. Preventing Fraud: Through its enforcement actions, the SEC deters and punishes fraudulent activities, protecting investors from scams and unethical practices.

SEC, MSRB, FINRA to Hold Hybrid Compliance Outreach Program The Securities and Exchange Commission, Municipal Securities Rulemaking Board (MSRB), and Financial Industry Regulatory Authority (FINRA) today announced the opening of registration for both in-person and virtual attendance of their Compliance Outreach Program for municipal market professionals. The event is open to the public and will take place on Wednesday, Nov. 20, and Thursday, Nov. 21, 2024, at the Byron Rogers Federal Building in Denver, Colorado. The program will provide municipal market participants an opportunity to hear from SEC, MSRB, and FINRA staff on timely regulatory and compliance matters for municipal advisors and dealers. Panel topics will include compliance pain points for municipal advisors and broker-dealers, exam and enforcement priorities, a regulatory outlook, net capital requirements, federal fiduciary duty, post-trade monitoring, and other municipal market hot topics. “The SEC looks forward to co-hosting this meaningful Compliance Outreach Program for municipal market participants,” said SEC Director of the Office of Municipal Securities, Dave Sanchez. “These panel discussions address important regulatory and guidance information—much of which includes novel ideas and perspective—that municipal market participants will find valuable both in their roles and as industry leaders.” “We are pleased to continue coordinating with the SEC and FINRA to continue an open dialogue with municipal advisors and dealers to address their top concerns and interests,” said MSRB Chief Regulatory and Policy Officer Ernesto Lanza. “This year’s program devotes time to both municipal advisors and dealers in the form of breakout sessions that will address unique issues and needs for all types of municipal market professionals, including small firms.” “The Compliance Outreach Program is a great opportunity to engage in dialogue that fosters effective regulation, improves compliance, and strengthens everyone’s understanding of the industry,” said Michael Solomon, Executive Vice President, Examinations and Membership Application Program at FINRA. “We are pleased to partner with the SEC and MSRB to offer a forum where municipal market participants not only hear from their regulators but also work with them.” Registration is being administered by FINRA and is now open. The program is free and open to the public. For those unable to attend in-person or via the livestream, a recording will be archived on the SEC's webpage following the event. To submit questions and topics of interest in advance of the event, please email: [email protected]. Register for the program: ttps://https://lnkd.in/eJp2MgSg