Regulatory Notice 09-12

Reporting Requirements for Settlements of Customer Disputes Involving Auction Rate Securities

Executive Summary

FINRA reminds firms that reach settlements of claims related to the sale of auction rate securities that, in determining the settlement amount for the purpose of potential reporting obligations pursuant to NASD Rule 3070 and Incorporated NYSE Rule 351 (Reporting Requirements) and Forms U4 and U5, firms must include the full dollar amount that was refunded to the customer as part of a repurchase agreement, plus any other damages identified in the settlement.

 

Questions concerning this Notice may be directed to:

 

  • Philip Shaikun, Associate Vice President and Associate General Counsel, Office of General Counsel (OGC), at (202) 728-8451; or
  • Erika L. Lazar, Senior Attorney, OGC, at (646) 315-8512.