Disciplined Firms Under FINRA Taping Rule (FINRA Rule 3170)
Effective December 1, 2014, FINRA Rule 3170, Tape Recording of Registered Persons by Certain Firms, commonly referred to as the "Taping Rule," was adopted into the Consolidated FINRA Rulebook, replacing NASD Rule 3010(b)(2). The Taping Rule provisions first became effective August 17, 1998, when the Securities and Exchange Commission approved an amendment to NASD Rule 3010 to require members to establish, enforce and maintain special written supervisory procedures, including the tape recording of conversations, when they have hired more than a specified percentage of registered persons from certain firms that have been expelled or that have had their broker/dealer registrations revoked for violations of sales practice rules ("disciplined firms"). These provisions were reconstituted without substantive changes into FINRA Rule 3170. Please refer to NASD Notices to Members 98-52, 02-61, 05-46 and FINRA Regulatory Notice 14-10 for a more specific explanation of the Taping Rule.
Below is a list of firms that meet the definition of "disciplined firm" under this Rule. This list is comprised of firms that were disciplined within the last three years.
- Portfolio Advisors Alliance, LLC
- Sandlapper Securities, LLC
- Windsor Street Capital, LP