Summary
In February 2019, FINRA published Regulatory Notice 19-06, launching a retrospective review of Rule 4370 (Business Continuity Plans and Emergency Contact Information) to assess its effectiveness and efficiency (the BCP Rule Review). The COVID-19 pandemic, beginning in early 2020, caused unprecedented regulatory and operational impacts on member firms and other market participants, as
Summary
In support of the Securities and Exchange Commission’s re-proposal to amend Rule 15b9-1 under the Securities Exchange Act of 1934,1 FINRA is issuing this Notice to re-open the comment period for Regulatory Notice 15-13. Rule 15b9-1 currently provides proprietary trading firms with an exemption from membership in a national securities association. If the SEC re-proposal is adopted, the
Application of Rule 2370 to lending arrangements between registered persons and banks or other financial institutions in the business of lending money.
FINRA poses several questions for firms to consider as they evaluate whether their supervisory systems are reasonably designed to address risks of their SPAC-related activities. These questions are based on FINRA’s observations to this point in our review. In addition, the Appendix notes additional guidance FINRA has provided regarding member firms’ relevant obligations.
The proposed rule penalizes average investors. Average investors should have the right to invest in vehicles that puts these investors in the same position as hedge fund managers. These hedge funds are not available to average investors. This rule puts them at a distinct disadvantage as investors as it removes a tool for average investors from their "tool belts".
For too long
I - not FINRA or Wall Street interests - should have the right to decide how to invest my money. If FINRA eliminates the ability to hedge portfolio volatility by restricting or eliminating access to leveraged and inverse funds, that is yet another example of having one rule for Main Street and another rule for Wall Street. Do not make this mistake.
Exemptive relief is granted based on: the representation that the individual did not engage in the solicitation of municipal securities business; for the six years prior to being hired by the Firm; the Contributions were made prior to the individual being employed by the Firm; imposition by the Firm of extensive Firm-wide information barriers on certain municipal securities business communications; prohibition of, for a specified period of time, the individual's solicitation of new municipal securities business; and the commitment to a quarterly certification of compliance.
October 2018 Supplement to the Options Disclosure Document
Exemptive relief is granted based on the following: (1) Name was not an MFP at the time the Contribution was made and was not engaged in, and did not supervise, municipal securities business; (2) the Firm took action once it became aware of the Contribution by retaining outside counsel to review the proposed reorganization and the possibility of municipal securities business restrictions as a result of the Contribution; (3) the Firm notified Name that when the municipal activities of certain retail sales brokers and MFP’s become part of the Business Unit on Month Day, 2003, the Firm will consider her to be an MFP and her municipal securities business activities will be restricted as a result of her Contribution and of her responsibilities3; (4) the Firm has agreed to restrict Name’s municipal securities activities, minimizing the potential for a quid pro quo resulting from the Contribution; and (5) although a less weighty factor, the Contribution has been returned.
It is important that traders and investors alike are allowed to trade funds without restrictions as we have been. We all take it upon ourselves to invest our resources and shouldn't have to pass any new imposing new rules to do so.
Any rules should be made at the beginning and not after a fund is already trading.
