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.
- Compliance Tools
- Industry Issues
- Preparing for a Cycle Examination
- Communications from the Small Firm Advisory Board (SFAB)
- Small Firm Advisory Board Roster
You may also email us with your comments and questions regarding small firm issues.
What's New
Important Reminder: Deadline For Form U4 Regulatory Action Questions
FINRA reminds firms that they must file amended Forms U4 for all of their registered persons to provide answers to six new disclosure questions regarding willful violations. Firms must file the amendments via Web CRD by 11 p.m. Eastern Time (ET), November 13, 2009. Additionally, firms should be certain that any provisional “no” responses filed since May 18, 2009 represent the final response for an individual or should update any such response by this deadline.
If your firm determines that a registered person must answer “yes” to any of the new regulatory action disclosure questions, please ensure that the disclosure reporting pages are complete for the amended filings.
Additional Information
- Visit the Approved Changes to Forms U4 & U5 Web page on this site for detailed information including answers to frequently asked questions regarding the revised forms and how to request an Unanswered Disclosure Questions Report from FINRA that will help firms identify their registered individuals who have not yet answered the new disclosure questions.
- Updated Signature Requirements for Electronic Filings: FINRA Rule 1010, which became effective July 29, 2009, supports the information reported by firms to Web CRD and, among other things, permits a firm to file amendments to Form U4 disclosure information without obtaining the associated person’s manual signature, subject to specified conditions (the mandatory signature exception). See Regulatory Notice 09-40 for complete information.
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:
- SEC-developed Frequently Asked Questions, posted 2/12/09, on PCAOB Registration of Non-Public Broker-Dealers.
- PCAOB’s Registration section of its Web site:
- Staff Questions and Answers on Registration of Broker-Dealer Auditors, posted 2/17/09, supplements the PCAOB’s Registration FAQ below to assist auditors of non-public broker-dealers considering PCAOB registration.
- Frequently Asked Questions, Question 8, generally addresses several of the questions regarding PCAOB registration most frequently received by FINRA regarding the January 8th Information Notice. The Staff Questions and Answers provide more detailed and recent guidance.
- List of registered accounting firms sorted by the geographic location of their headquarters office.
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.
