On November 17, the Securities and Exchange Commission adopted amendments to Regulation S-T to permit the use of electronic signatures in executing documents submitted electronically to the SEC through EDGAR.
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Michael T. Foley
FINRA Files Proposed Rule Change to Address Firms With History of Misconduct
On November 16, the Financial Industry Regulatory Authority (FINRA) filed with the Securities and Exchange Commission a proposed rule change to (1) adopt FINRA Rule 4111 (Restricted Firm Obligations), which would impose additional conditions on member firms with a history of misconduct; and (2) adopt FINRA Rule 9561 (Procedures for Regulating Activities Under Rule 4111) and amend FINRA Rule 9559 (Hearing Procedures for Expedited Proceedings Under the Rule 9550 Series) to create a new expedited proceeding to implement proposed Rule 4111.
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FINRA Conducts Review of Waiver and Rebate Systems and Procedures with Respect to Mutual Fund ROR Purchases
The Financial Industry Regulatory Authority (FINRA) announced that it is conducting a review of firms’ systems and procedures for providing waivers and rebates to customers through Rights of Reinstatement (ROR) on mutual fund purchases.
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FINRA Requests Comments for Proposed Amendments to FINRA Rule 2165
On October 5, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-34, which requests comment on proposed amendments to Rule 2165.
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FINRA Alerts Firms to Widespread Phishing Email
The Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-35, alerting firms of an ongoing phishing campaign that involves fraudulent emails purporting to be from FINRA asking member firms to complete a survey.
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SEC Proposes Allowing ‘Finders’ to Raise Capital Without Registering as Broker-Dealers
The Securities and Exchange Commission (SEC) has proposed an exemption from broker-dealer registration requirements for certain “finders” who raise capital for issuers in private offerings and receive transaction-based compensation for doing so (i.e., a “success fee”).
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SEC Amends Exchange Act Rule 15c2-11 to Enhance Retail Investor Protections and Modernize Governing Quotations for Over-the-Counter Securities
On September 16, the Securities and Exchange Commission adopted amendments to the Securities Exchange Act of 1934 (Exchange Act) Rule 15c2-11 to modernize the rule, including by recognizing advances in communications technology. The rule requires broker-dealers to review key, basic issuer information before initiating or resuming quotations for the issuer’s security in the over-the-counter (OTC) market.
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SEC Modernizes Disclosures for Banking Registrants
On September 11, the Securities and Exchange Commission announced that it had adopted rules that update and expand the statistical disclosures that bank and savings and loan registrants provide to investors while eliminating duplicative disclosures. The new SEC rules require disclosure about the following:
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SEC Releases Report and Recommendations in Connection With The 39th Annual Small Business Forum
On September 14, the Securities and Exchange Commission released its report and recommendations in connection with the Annual Small Business Forum.
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FINRA Issues Guidance on Public Offerings
On September 15, the Financial Industry Regulatory Authority (FINRA) issued guidance on public offerings, outlining the obligations of FINRA member firms under FINRA Rules 5110, 5121 and 2310.
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