Guidance

Regulatory Obligations

Exchange Act Rule 15c3-3 (Customer Protection Rule) requires firms that maintain custody of customer securities and safeguard customer cash to segregate these assets from the firm’s proprietary business.

The Sales Practice Complaint Report is a quarterly report that displays trends in complaints with Sales Practice problem codes as reported to FINRA pursuant to FINRA Rule 4530. Note: prior to July 1, 2011, this report showed complaints reported pursuant to NASD Rule 3070(c) or NYSE Rule 351(d). For the purposes of the report, Sales Practice Complaints are evaluated against the number of representatives registered with the firm and the sales revenue of the firm.

The Financial Crimes Spotlight is a free webinar series hosted by FINRA’s Financial Intelligence Unit that focuses on how to detect and protect against emerging financial crimes and cyber-related threats and trends. 

These events are open to FINRA member firms only. Participants must provide their firm's broker-dealer number when registering.

Upcoming Webinars

There are no upcoming webinars scheduled at this time.

FINRA has made a number of changes in the area of regulatory policy to improve the policy development process and better ensure that our rules reflect current industry dynamics.

• Retrospective Rule Review
• Qualification Exam Restructuring
• Capital Raising

In Regulatory Notice 23-17, FINRA announced its decision, effective November 30, 2023, to discontinue collecting INSITE data, pursuant to Rule 4540, at this time.  As a result, effective November 30, 2023, the Customer Debits Report was retired from the FINRA Report Center.

Background

FINRA promotes the capital-raising process through appropriately tailored rules that are designed to promote transparency and to establish important standards of conduct for the benefit of all market participants, including investors and issuers participating in offerings.

Question 1

Does FINRA Rule 3210 impose any requirement as to what specific information or data an employer member must review or monitor upon receiving duplicate copies of confirmations and statements, or the transactional data contained therein, with respect to an account subject to the rule?

Answer

The TRACE Quality of Markets Report Card for Securitized Products is a monthly status report for the reporting of transactions in Asset Backed Securities, Mortgage Backed Securities and other similar securities, collectively defined as "Securitized Products", to the Trade Reporting and Compliance Engine (TRACE). Firms are required to report trades in accordance with established FINRA rules and regulations.

Q. What is a duplicate disclosure and how is a duplicate disclosure created?

Background

An important part of FINRA's work involves providing investors the information and tools they require to make informed decisions about their assets and avoid dealings with bad actors. Several respondents to the Special Notice on Engagement issued in March 2017 provided a range of recommendations related to FINRA's efforts in the area of investor education—including the types of investor education content we develop and our dissemination strategies.

The Cross-Market Equities Supervision Manipulation Report is a tool designed to provide firms feedback on exceptions that were generated based on the firm’s order entry and trading activity in a given surveillance period. The report covers two distinct analyses; layering and Cross-Market Quote Spoofing. This report is produced on a monthly basis.

This report provides a summary of the review activity for the filings submitted during the selected and previous reporting periods.

If you have questions regarding the content of this report, please contact FINRA Corporate Financing at (240) 386-4623.

Deals Filed During the Selected Period

Background

In response to the March 2017 Special Notice on Engagement issued as part of FINRA360, FINRA received a number of comments and suggestions regarding engagement in connection with FINRA's rulemaking process. After carefully reviewing and analyzing the comments, FINRA is taking a number of actions to address the comments and suggestions that it received.

Rulemaking Process

Questions and Answers on FINRA’s Eligibility Proceedings for Firms Participating in the Securities and Exchange Commission’s (“SEC” or “Commission”) Share Class Selection Disclosure Initiative (“SCSD Initiative”).

CRCP^® Program Overview

Learn more about the purpose and content of the FINRA Institute at Georgetown CRCP^® program. They include building a culture of compliance and helping compliance professionals take their careers to the next level.