SEC Approves FINRA Rule Regarding Verification of Member Assets at Non-Member Financial Institutions

Posted on December 10, 2010 by Daren R. Domina

Co-authored by Louis Froelich

New Financial Industry Regulatory Authority Rule 4160 will go into effect February 1 in an effort by FINRA to strengthen its ability to independently verify assets maintained by a FINRA member at a non-member financial institution. FINRA Rule 4160 will prohibit members from continuing to custody or retain record ownership of assets at non-member financial institutions that fail promptly to provide FINRA, upon FINRA’s written request, with written verification of the FINRA member’s assets maintained at such non-member financial institution. In the Regulatory Notice, FINRA encourages, although does not require, FINRA members to contract with non-member financial institutions maintaining the FINRA member’s assets (whether proprietary or customer assets) to require such non-member financial institutions to oblige with verification requests from FINRA.

Click here to read FINRA Regulatory Notice 10-61.

Tags:
Trackbacks (0) Links to blogs that reference this article Trackback URL
http://www.corporatefinancialweeklydigest.com/admin/trackback/232518
Comments (0) Read through and enter the discussion with the form at the end
Post A Comment / Question Use this form to add a comment to this entry.







Remember personal info?
Send To A Friend Use this form to send this entry to a friend via email.