Small Firms Information

Small Firms Information

FINRA has created this page to provide information for the small firm community—those firms with 150 or fewer registered representatives. This page contains current and past communications, links of interest to small firms, and other information. 

 

 

You may also email us with your comments and questions regarding small firm issues. 

 

 

What's New

 

Reminder: Series 79 Investment Banking Representative Exam

 

Effective Monday, November 2, 2009, amendments to NASD Rules 1022 and 1032 require individuals whose activities are limited to investment banking and principals who supervise such activities to pass the new Limited Representative – Investment Banking Qualification Examination (Series 79 Exam). Individuals who are registered as a General Securities Representative (Series 7) and engage in the member firm's investment banking business as described in NASD Rule 1032(i) may "opt in" to the new registration category starting Monday, November 2. The six-month opt-in period will end on May 3, 2010. For more information, see Regulatory Notice 09-41.

 

 

FTC Fair and Accurate Credit Transactions Act of 2003 (FACT Act) Red Flags Rule Enforcement Has Been Delayed to June 1, 2010

 

The FTC will begin to enforce its Fair and Accurate Credit Transactions Act of 2003 (FACT Act) Red Flags Rule on June 1, 2010. Firms subject to this rule—which include most broker-dealers—must have in place a written program to identify, detect and respond to patterns, practices or specific activities that could indicate identity theft.

 

FINRA has developed a new, optional template that firms may use as guides when fulfilling their requirements under the Federal Trade Commission's (FTC's) Red Flags Rule.

 

 

PCAOB-Registered Auditors Required for Fiscal Years Ending After December 31, 2008: Additional Guidance Available

 

On December 31, 2008, the SEC’s order that allowed non-public broker dealer firms to have their financial statements audited by independent public accounting firms not registered with the Public Company Accounting Oversight Board (PCAOB) expired. Details are in Information Notice 1/8/09.

 

The following resources may be useful to firms seeking to comply with the PCAOB-registered auditor requirement:

 

 

2009 Examination Priorities

 

FINRA has issued its 2009 examination priorities letter to highlight new and existing areas of particular significance to this year's examination program. In addition to specific examination priorities, the letter also addresses some general concerns given the current market environment. FINRA shares these areas of potential examination focus to help firms assess their compliance and supervisory programs.

 

 

FINRA Rulebook Consolidation

To help firms keep track of the various phases of the rulebook consolidation, FINRA has created a special Web page that centralizes rulemaking activity for the FINRA Rulebook.

 


Rules Regarding Supervision, Supervisory Controls and CEO Certification

 

Note: FINRA Rule 31301 (Annual Certification of Compliance and Supervisory Processes) replaces NASD Rule 3013 and the corresponding provisions in Incorporated NYSE Rule 342.30 and related NYSE Rule Interpretations (effective December 15, 2008). See Regulatory Notice 08-57 and SR-FINRA-2008-030 for additional information.

 

FINRA has consolidated resource information regarding NASD Rule 3012 (Supervisory Control System), FINRA Rule 3130 (Annual Certification of Compliance and Supervisory Processes) and amendments to Rule 3010 (Supervision). In addition, the materials provide information regarding related amendments to Rule 2510 (Discretionary Accounts), Rule 3110 (Books and Records) and IM-3110 (Customer Account Information). Visit the Supervisory Control section of the Web site for more information.

For specific guidance for complying with NASD Rule 3012 and FINRA Rule 3130, visit Guidance on Complying with NASD Rule 3012 and FINRA Rule 3130.

 

 

1 The current FINRA rulebook includes (1) FINRA Rules, (2) NASD Rules and (3) rules incorporated from NYSE (Incorporated NYSE Rules).While the NASD Rules generally apply to all FINRA member firms, the Incorporated NYSE Rules apply only to those members of FINRA that are also members of the NYSE (Dual Members). For more information about the rulebook consolidation process, see Information Notice 03/12/08.

 

 

Firm Gateway: A New, Easy Way to Access FINRA Regulatory Applications

As part of our commitment to helping firms meet their regulatory obligations, we've developed the Firm Gateway - a new tool that provides consolidated access to FINRA applications and timely information relevant to your firm. The Firm Gateway provides:

 

  • One place for regulatory filing and reporting needs
  • One-click access to common tasks and useful resources
  • An at-a-glance view of important filing dates, tasks, events and upcoming rule changes
  • A consolidated view of regulatory forms and filings 


Quarterly Disciplinary Review
View the latest issue of the Quarterly Disciplinary Review, a summary sampling of recent disciplinary actions involving misconduct by registered representatives that call attention to, and remind registered representatives and firms of, specific conduct that violates FINRA rules and may result in disciplinary action.

 

FINRA Rule Filing Status Report

The FINRA Rule Filing Status Report provides firms with a comprehensive list of FINRA rule filings currently pending with the SEC, as well as FINRA rule filings approved by the SEC, filed with the SEC for immediate effectiveness, or withdrawn within the last six months.