Summary
Recently, FINRA took enforcement action against several firms for failing to establish or maintain a reasonably designed supervisory system for recommendations of alternative mutual funds, also sometimes referred to as “alt funds” or “liquid alts” (“Alt Funds”). FINRA is continuing to note such deficiencies in its examinations and communications reviews of such products.
This Notice
SUGGESTED ROUTING*
Senior Management
Legal & Compliance
Operations
Trading
Syndicate
*These are suggested departments only. Others may be appropriate for your firm.
EXECUTIVE SUMMARY
The Securities and Exchange Commission (SEC) recently approved new Schedule H to the
Monday, May 12 - Pre-Conference2:00 p.m. – 4:30 p.m.Cyber Tabletop Exercise (pre-registration required)5:00 p.m. – 6:30 p.m.New Attendee Reception (pre-registration required)5:00 p.m. – 7:00 p.m.Registration & Information Tuesday, May 137:30 a.m. – 6:00 p.m.Registration & Information8:00 a.m. – 9:30 a.m.Senior Investor Financial Exploitation Case Study Workshop
LockBit, one of the most deployed ransomware variants in recent years, continues to impact organizations across the globe, including FINRA member firms. Since November of 2023, FINRA has received reports from several member firms related to cyber incidents allegedly perpetrated by LockBit. The reported incidents varied in severity from no impact to significant disruptions in firms’ business operations. As a result, the Cyber and Analytics Unit (CAU) within FINRA’s Member Supervision Program is notifying firms of the increased activity of this threat actor to heighten awareness and visibility of this risk. CAU is also providing a compilation of resources that outline effective practices firms may consider in response to this elevated risk.
Through its Complaint Program, FINRA investigates complaints against brokerage firms and their employees. FINRA is empowered to take disciplinary actions against brokers and their firms. Sanctions may include fines, suspensions, a barring from FINRA membership or other appropriate sanctions.
Ive used leveraged and inverse funds, as well as options on them, as a retail investor for years and I intend to continue doing so.
Your intrusion into our lives is well beyond the benefit of our citizens and communities, stop trying to control our lives.
Leveraged investments are part of my portfolio. Please don't limit my ability to invest in these. They have served me well!
Your proposed regulation is counterintuitive. Most investors are well aware of the risk/reward offer by these investment vehicles. Do NOT impose these regulations.
Yes, please to all of this. Transparency is needed here. Elimination of the dark pools as well.
