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Reminder: Redesigned eFOCUS System

October 13, 2021
Volume 41

 
 
guidance

Guidance
  • Regulatory Notice
  • UPC Advisory
upcoming

Upcoming Deadlines and Effective Dates
  • FINRA Requests for Comment
  • SEC Requests for Comment
education

Education and Compliance Programs


Reminder: FOCUS Part II/IIA to be filed in redesigned eFOCUS system. FINRA reminds firms that the FOCUS Part II/IIA filings for the October 2021 filing period will be submitted through the newly redesigned eFOCUS system. If users have not done so already, they should familiarize themselves with the redesigned system prior to the filing deadline. For more information on the redesigned system, visit FINRA.org; for specific questions please contact your Risk Monitoring Analyst, call the Gateway Call Center at 800-321-6273, or email [email protected].
 



FINRA’s virtual conference panels provide a unique opportunity to hear the most up-to-date compliance information directly from industry and regulatory leaders from the comfort of your home. Watch our latest panel today: Back to Basics: Fundamentals of FINRA Rule 2210. This session is designed for compliance and marketing professionals who are new to FINRA’s advertising rules or experienced practitioners interested in a refresher.
 

 Guidance

FINRA Encourages Firms to Consider How to Incorporate the Government-wide Anti-Money Laundering and Countering the Financing of Terrorism Priorities Into Their AML Programs

The Financial Crimes Enforcement Network (FinCEN) has issued the first government-wide priorities for anti-money laundering and countering the financing of terrorism policy, which was mandated by the Anti-Money Laundering Act of 2020. FinCEN also issued a statement to provide covered non-bank financial institutions, including broker-dealers, with guidance on how to approach the AML/CFT Priorities. FINRA issued Regulatory Notice 21-36 to inform member firms of the AML/CFT Priorities and the Statement, and to encourage member firms to consider how to incorporate the AML/CFT Priorities into their risk-based anti-money laundering compliance programs.

UPC Advisory

The following UPC Advisory was published in the last week:

  • UPC #102-21: Arbor Rlty Tr Inc

 Upcoming Deadlines and Effective Dates

FINRA Requests for Comment

FINRA is requesting comments on its Cloud Computing in the Securities Industry report, including areas where guidance or modifications to FINRA rules may be desired to support cloud adoption while maintaining investor protection and market integrity. Comments are requested by October 16, 2021.

FINRA requests comment in Regulatory Notice 21-32 on a proposed change to its current policy relating to the assignment of OTC symbols to unlisted equity securities. Specifically, FINRA is considering whether it should begin assigning OTC symbols to unlisted equity securities that do not have a valid CUSIP identifier, in the limited circumstance where a member firm demonstrates its best efforts to obtain a CUSIP identifier and provides documentation to identify the security. Comments are requested by November 15, 2021.

FINRA requests comment in Regulatory Notice 21-35 on a proposal to require members to publish quarterly order routing disclosure reports for held orders in OTC Equity Securities. The proposed new quarterly reports would be similar to those required for NMS stocks under the Securities and Exchange Commission’s (SEC) Rule 606(a) of Regulation NMS, with certain modifications reflecting the different structure of the OTC market. FINRA also requests input on possible steps to further facilitate investor access and understanding of current order routing disclosures for NMS securities. Comments are requested by December 6, 2021.

SEC Request for Comment

On September 22, 2021, the SEC issued an order instituting proceedings to determine whether to approve or disapprove FINRA’s proposed rule change to Rule 2165 (Financial Exploitation of Specified Adults) to permit member firms to: (1) place a temporary hold on a securities transaction where there is a reasonable belief of financial exploitation; and (2) extend a temporary hold on a disbursement of funds or securities or a transaction in securities for an additional 30-business days if the member firm has reported the matter to a state regulator or agency or a court of competent jurisdiction. Comments are due October 13, 2021. Any rebuttals to comments filed with the SEC must be submitted by October 19, 2021. See the SEC Notice of Order.

The SEC requests comment on FINRA’s proposal to amend Rule 2231 (Customer Account Statements) to, among other things, (a) add new supplementary materials pertaining to compliance with Rule 4311 (Carrying Agreements), the transmission of customer account statements to other persons or entities, the use of electronic media to satisfy delivery obligations, and compliance with Rule 3150 (Holding of Customer Mail); and (b) incorporate without substantive change specified provisions derived from Temporary Dual FINRA-NYSE Rule Interpretation 409T (Statements of Accounts to Customers) pertaining to information disclosed on customer account statements, externally held assets, use of logos and trademarks, and use of summary statements. Comments are due October 27, 2021. See the Federal Register notice.
 

 Education and Compliance Programs

Join members of FINRA’s Technology and Credentialing, Registration, Education and Disclosure (CRED) teams on Thursday, October 21 from 2 to 3 p.m. ET for a discussion about recent FinPro enhancements. During the webinar, staff will demonstrate supporting FinPro and FINRA Gateway functionality and answer audience questions.

Register today for the 2021 Access and Impact Conference: Gauging the Participation of Diverse Communities in the Capital Markets on October 22. Join the FINRA Investor Education Foundation, FINRA's Office of the Chief Economist, and NORC at the University of Chicago for this free virtual event as panelists examine methods and impacts of increasing access or reducing impediments to the provision of financial services to diverse communities. View the agenda for more information and session descriptions.

Registration is open for the virtual Trading and Execution Member Forum on November 10. Firm Grouping Member Forums are free one-day events designed to provide financial professionals associated with FINRA member firms the opportunity to engage in key discussions with FINRA staff and connect with industry leaders and peers. The forums also include thoughtful discussions around the future landscape of the financial services industry and provide opportunities to meet one-on-one with FINRA Risk Monitoring Analysts, Directors, and Single Points of Accountability to discuss firm-specific questions.

View the latest on-demand sessions from the 2021 FINRA Annual Conference and the 2021 Virtual Technology Conference. On-demand sessions are available for FINRA member firms and CRCP® graduates. Sessions from the 2021 Diversity Leadership Summit are also available for on-demand viewing.

Register for all of FINRA’s upcoming events:

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