Regulatory Notice 10-61

SEC Approves New FINRA Rule 4160 Relating to the Verification of Assets at a Non-Member Financial Institution

Effective Date: February 1, 2011

Executive Summary

Effective February 1, 2011, new FINRA Rule 4160 (Verification of Assets) prohibits a member, when notified by FINRA, from continuing to custody or retain record ownership of assets at a non-member financial institution, which, upon FINRA staff’s request, fails promptly to provide FINRA with written verification of assets maintained by the member at such financial institution. The text of FINRA Rule 4160 is set forth in Attachment A of this Notice.

 

Questions concerning this Notice should be directed to:

  • Anand Ramtahal, Senior Vice President, Risk Oversight & Operational Regulation, at (646) 315-8565; or
  • Matthew E. Vitek, Counsel, Office of General Counsel, at (202) 728-8156.