Skip to main content

Register Today for an Upcoming Member Forum in Your Region

December 31, 2019
Volume 53

 
 
disciplinary actions

Disciplinary Actions

 
upcoming

Upcoming Deadlines and Effective Dates
  • FINRA Request for Comment
  • SEC Request for Comment
  • Upcoming Effective Date
  • Renewal Program
education

Education and Compliance Programs

Register today for FINRA's 2020 Cybersecurity Conference on January 14 in New York, NY. This one-day event helps you stay current on today's cybersecurity challenges and the ways in which organizations can understand vulnerabilities and threats, and create resilience against cyberattacks. View the conference agenda for more information.
 

  Disciplinary Actions

FINRA publishes disciplinary actions to remind registered representatives and firms of specific conduct that violates FINRA rules and may result in disciplinary action. FINRA posted the following disciplinary items on the website this week:

  • FINRA announced that it has ordered Oppenheimer & Co. Inc. to pay more than $3.8 million in restitution to customers who incurred potentially excessive sales charges caused by early rollovers of Unit Investment Trusts (UITs). FINRA also fined the firm $800,000 for failing to reasonably supervise early UIT rollovers.
     
  • FINRA announced that it has sanctioned five firms—Citigroup Global Markets Inc.; J.P. Morgan Securities LLC; LPL Financial LLC; Morgan Stanley Smith Barney LLC; and Merrill Lynch, Pierce, Fenner & Smith Incorporated—for failing to reasonably supervise compliance with FINRA Rule 2090, FINRA’s “Know Your Customer” rule.

 Upcoming Deadlines and Effective Dates

FINRA Request for Comment

Registered Person Being Named a Customer’s Beneficiary or Holding a Position of Trust
FINRA has issued Regulatory Notice 19-36 to request comment on a proposal to limit a registered person from being named a customer’s beneficiary or holding a position of trust on behalf of a customer. The proposed rule would require the member firm with which the registered person is associated to review and approve the registered person assuming such status or acting in such capacity. The proposed rule would not apply where the customer is a member of the registered person’s “immediate family.” Comments are due by January 10, 2020.


SEC Request for Comment

The SEC requests comment on FINRA’s proposal to amend the Membership Application Program rules to help further address the issue of pending arbitration claims, as well as arbitration awards and settlement agreements related to arbitrations that have not been paid in full in accordance with their terms. The comment period expires January 21, 2020. See the
Federal Register notice.


Upcoming Effective Date

The Securities and Exchange Commission approved a rule change to amend FINRA Rule 5130 (Restrictions on the Purchase and Sale of Initial Equity Public Offerings) and FINRA Rule 5131 (New Issue Allocations and Distributions) to modify the rules to enhance regulatory consistency and address unintended operational impediments. These changes, outlined in Regulatory Notice 19-37, become effective on January 1, 2020.


Renewal Program

On January 2, 2020, FINRA will post Final Renewal Statements in E-Bill. Adjustments resulting from registration approvals or terminations as of December 31, 2019, will be included in this final statement. The payment deadline is January 17, 2020, for firms that have a balance due. Visit the 2020 Renewal Program page for details.

 

 Education and Compliance Programs

On Wednesday, January 8, 2020, at 2 p.m. ET, Consolidated Audit Trail, LLC and FINRA CAT, LLC will host a CAT 101 Industry Webinar. This Webinar is designed for Industry Members that may be new to, or less familiar with, CAT and will provide an introduction to the reporting requirements, timelines and mechanics of the Consolidated Audit Trail. Visit the website for more information.


Register today for the South Region Member Forum on January 23, 2020 in Hollywood, Florida. This one-day event, which will feature sessions on key topics like the SEC’s Regulation Best Interest, is designed to provide financial professionals associated with FINRA member firms in the South region the opportunity to engage in discussions with FINRA staff, and connect with industry leaders and peers.


Registration is now open for the North Region Member Forum on February 12, 2020 in Boston, MA. This one-day event, which will feature sessions on key topics like the SEC’s Regulation Best Interest, will provide financial professionals associated with FINRA member firms in the North region the opportunity to engage in discussions with FINRA staff and connect with industry leaders and peers.


Reserve your spot at FINRA’s premier event! Register today to receive reduced conference registration rates for the 2020 Annual Conference on May 12–14 in Washington, DC.


Save the Date for these upcoming FINRA events:

  • FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program – Week I | July 19–24, 2020 | Washington, DC
  • Small Firm Conference | October 14–15, 2020 | Santa Monica, CA
  • FINRA Institute at Georgetown Certified Regulatory and Compliance Professional® Program – Week II | November 15–20, 2020 | Washington, DC

FINRA logo

 facebook   twitter   linked in

Regulatory Contacts
FINRA By-Laws require member firms to maintain an Internet email account on behalf of their executive representatives. This facilitates firm notification of important publications and information added to the FINRA website.

Firms wishing to change the name or email address of their executive representative or designated assistant should do so through the FINRA Contact System (FCS). See
http://www.finra.org/FCS for further information. Requests from executive representatives to be removed from this email notification list cannot be honored.

Subscribers
You received this message because you are currently subscribed to the email subscription list on the FINRA website. To update, sign up for other email lists or cancel your subscription at any time, use our "update information" or "unsubscribe" forms located at
http://www.finra.org/Industry/Subscriptions.