On May 28, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-16 to share common themes observed through discussions with small, mid-size and large firms about the steps they reported taking to transition their associated persons and supervisory procedures to a remote work environment during the coronavirus (COVID-19) pandemic.
Continue Reading FINRA Shares Practices to Transition to a Remote Work Environment during COVID-19
ESMA Recommendation to Financial Market Participants in Light of COVID-19
Posted in EU Developments, Financial Markets
On March 12, the European Securities and Markets Authority (ESMA) issued a public statement to note certain recommendations for EU financial market participants as a result of the impact and developments of COVID-19 (the Statement). ESMA’s recommendations include:
Continue Reading ESMA Recommendation to Financial Market Participants in Light of COVID-19
FINRA Issues 2019 Report on Examination Findings and Observations
By Michael T. Foley & Susan Light on
Posted in Broker-Dealer
On October 16, the Financial Industry Regulatory Authority (FINRA) published its 2019 Report on Examination Findings and Observations (Report). Unlike previous years, the Report delineates between examination “findings” and examination “observations.” “Findings” describe violations of a rule or regulation, whereas “observations” refer to suggestions regarding how firms can improve controls and mitigate risk. The annual Report summarizes various findings and observations from recent examinations of its member firms on a range of topics, including the following:
Continue Reading FINRA Issues 2019 Report on Examination Findings and Observations
FINRA Requests Comment on Its Rule on Business Continuity Plans and Emergency Contact Information
By Michael T. Foley & Leonard Licht on
Posted in Broker-Dealer
The Financial Industry Regulatory Authority (FINRA) recently released a regulatory notice requesting comment on the effectiveness and efficiency of Rule 4370 (Business Continuity Plans and Emergency Contact Information). The comment period expires April 26.
Rule 4370 requires a member firm to create, maintain, annually review and update upon any material change a written business continuity plan (BCP) identifying procedures relating to an emergency or significant business disruption.
Continue Reading FINRA Requests Comment on Its Rule on Business Continuity Plans and Emergency Contact Information
FINRA Releases 2018 Regulatory and Examination Priority Letter
Posted in Broker-Dealer
On January 8, the Financial Industry Regulatory Authority (FINRA) released its annual Regulatory and Examination Priority Letter detailing various issues that will be the subject of particular regulatory focus and scrutiny this year. Many of the areas noted are carry-overs from previous years, including the protection of senior investors and other retail customers, new product suitability reviews, and enhanced scrutiny of high-risk brokers. However, the letter also reflects various new issues that have caught FINRA’s attention and will require increased attention by FINRA member firms.
Continue Reading FINRA Releases 2018 Regulatory and Examination Priority Letter