On October 15, the Financial Industry Regulatory Authority (FINRA) released an information notice (Notice) providing additional background on authentication techniques for firms to consider as they implement cybersecurity authentication programs.
Continue Reading FINRA Releases Information Notice on Cybersecurity Authentication Methods

On October 20, the National Adjudicatory Council (NAC) of the Financial Industry Regulatory Authority (FINRA) revised the Principal Considerations in Determining Sanctions section of the FINRA Sanction Guidelines to expressly contemplate a customer’s age or physical or mental impairment. In connection therewith, FINRA released Regulatory Notice 20-37.
Continue Reading FINRA Releases Regulatory Notice on Revised NAC Sanction Guidelines

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”).
Continue Reading SEC Proposes Allowing ‘Finders’ to Raise Capital Without Registering as Broker-Dealers

On September 22, the Financial Industry Regulatory Authority (FINRA) issued Regulatory Notice 20-33 that requested comment on (1) proposed formal procedures to bring actions against non-associated persons who cheat or misbehave during a FINRA qualification examination and (2) related amendments to FINRA’s registration requirements rule and eligibility proceedings rules.
Continue Reading FINRA Requests Comment on Proposed Proceeding Rule for Failures to Comply With Qualification Examinations Rules of Conduct, Registration Requirements and Eligibility Proceedings Rules

On September 28, the Securities and Exchange Commission announced that it will hold a roundtable on October 26 at which staff from the SEC and the Financial Industry Regulatory Authority (FINRA) will discuss initial observations on the implementation of Regulation Best Interest and Form CRS.
Continue Reading SEC Staff to Host Roundtable on Regulation Best Interest and Form CRS on October 26

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.
Continue Reading SEC Amends Exchange Act Rule 15c2-11 to Enhance Retail Investor Protections and Modernize Governing Quotations for Over-the-Counter Securities

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:
Continue Reading SEC Modernizes Disclosures for Banking Registrants