On March 17, 2022, FINRA released Regulatory Notice 22-10. It dealt with Supervision. I started to see posts, that FINRA had firmly stated that the CCO (Chief Compliance Officer) would not be disciplined for failures to supervise. The release states “The responsibility to meet these obligations (those outlined in Rule 3110) rests with a firm’s […]
Now is the time to pull out your Business Continuity Plan and read it. You need to make sure that all of the information is accurate. Have you changed the location of your offsite location? Have you changed the policy on people working from home? Is your communication tree up to date? If you do […]
On June 5, 2019, the SEC on a 3 to 1 vote approved Regulation Best Interest. This regulation is the SEC’s attempt to align broker-dealers with the fiduciary rule that governs investment advisers. It has been a long-held belief that broker-dealers have internal conflicts because they sell products that are packaged by affiliates and sell […]
While we were off enjoying the 4th of July in the middle of the week, FINRA was issuing Regulatory Notice 18-20—Digital Assets. It is short and seemingly rather innocent. But read it closely. A few weeks ago some FINRA members were contacted by their Regulatory Coordinators and asked if they were doing anything with digital […]
Earlier this week I told investment advisers CCOs not to lose sleep. I suggested that during this 45 day period until registration you should systematically review your compliance and supervisory policies and procedures. I missed the fun yesterday. Yesterday at the Investment Adviser Association Investment Adviser Compliance Conference Robert Plaze, Deputy Director of the SEC Division of Investment Management warned […]
So you got your Form ADV filed with the SEC and you are waiting for March 31. Don’t just wait. As I wrote back in December registration is just the beginning of the journey. Now is the time to find the kinks in your compliance and supervisory programs. Over the next month you should systematically […]
If you are the Chief Compliance Officer for a broker-dealer and a registered investment advisor keep reading. During 2011, one within the last month, the SEC has taken action against two dually registered broker dealer/investment advisers for failure to have adequate written supervisory policies and procedures, compliance manuals and code of ethics for the advisory […]
This headline flashed across my computer screen a few days ago in an e-mail. SEC orders FINRA to improve compliance policies and procedures The SEC order arises from a whistleblower complaint. Prior to submitting records to the SEC, the regional director of the FINRA Kansas City office had minutes of the district office staff […]
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