On March 3, the Securities and Exchange Commission’s Division of Examinations announced its examination priorities for 2021. These priorities include a greater focus on climate-related risks, conflicts of interests for brokers and investment advisers, and attendant risks related to FinTech.
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Susan Light
SEC Announces New Climate and ESG Task Force
On March 4, the Securities and Exchange Commission announced the creation of its new Climate and ESG Task Force within the Division of Enforcement. …
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SEC Issued Order Permitting 30-Day Filing Extension for Broker-Dealers
In response to a recent request by the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission has issued an order (the Order) designed to ease potential burdens that smaller broker-dealers may face in obtaining audit services. Rule 17a-5(d)(1)(i) of the Securities Exchange Act of 1934 (Exchange Act) requires that, unless a broker meets…
FINRA Provides Additional FINRA Exams Online
Effective February 24, and in response to the ongoing challenges posed by the COVID-19 pandemic, the Financial Industry Regulatory Authority (FINRA) is providing an interim accommodation to allow candidates to take additional FINRA exams online, including the Series 24, Series 57, Series 79 and Series 99 exams. An interim accommodation request is not required for the Securities Industry Essentials (SIE), Series 6 or Series 7 exams, which have been available online for all candidates since mid-July 2020.…
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2021 GASB Accounting Support Fee to Fund the GASB’s Annual Budget
Pursuant to a Securities and Exchange Commission order, the Financial Industry Regulatory Authority (FINRA) established an accounting support fee to fund the annual budget of the Governmental Accounting Standards Board (GASB). Each quarter, FINRA collects a quarter of the annual GASB accounting support fee from its member firms. Each member firm’s assessment is based on…
FINRA Amends Arbitration Codes to Increase Arbitrator Chairperson Fees and Certain Arbitration Fees
On February 12, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 21-04 (Notice), in connection with an amendment to FINRA’s Codes of Arbitration Procedure for Customer and Industry Disputes, regarding certain fees paid to arbitration chairpersons. FINRA Rules 12214 and 13214 were amended to increase the hearing-day chairperson fee from $125 to $250 to better compensate the chairperson for the additional training and responsibilities required of the position. Additionally, the amendments establish a new chairperson fee for an additional $125 for each prehearing conference that the chairperson leads, even if an arbitration case closes without a hearing.…
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New Rate for Fees Paid Under Section 31 of the Exchange Act
On February 16, the Financial Industry Regulatory Authority (FINRA) issued an Information Notice (Notice) regarding a new fee rate applicable to specified securities transactions on the exchanges and in the over-the-counter markets. Such fee rate will decrease from its current rate of $22.10 per million dollars in transactions to a new rate of $5.10 per million dollars in transactions.…
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FINRA Releases Regulatory Notice on Policies and Procedures Relating to Fraud Involving Low-Priced Securities
On February 10, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 21-03 (the Notice) urging member firms to review their policies and procedures with respect to red flags of potential securities fraud involving low-priced securities. …
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FINRA New Rule 3241 Becomes Effective February 15
On February 15, Financial Industry Regulatory Authority (FINRA) new Rule 3241 — “Registered Person Being Named a Customer’s Beneficiary or Holding a Position of Trust for a Customer” — becomes effective. The new rule limits any associated person of a member firm who is registered with FINRA (each a “registered person”) from being named a beneficiary, executor or trustee, or to have a power of attorney or similar position of trust for or on behalf of a customer.…
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FINRA Proposes Amendments to Private Placement Filer Form
On January 27, FINRA proposed amendments to its Private Placement Filer Form (Filer Form), which members are required to complete upon submission of private placement filings under FINRA Rules 5122 and 5123.…
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