Proposed Rule Change Relating to FINRA Rule 5110 (Corporate Financing Rule – Underwriting Terms and Arrangements) to Make Substantive, Organizational and Terminology Changes
Proposed Rule Change to Extend the Current Pilot Program Related to FINRA Rule 11892 (Clearly Erroneous Transactions in Exchange-Listed Securities)
FINRA Announces Update of the Interpretations of Financial and Operational Rules
Proposed Rule Change to Extend the Pilot Period Related to FINRA Rule 6121.02 (Market-wide Circuit Breakers in NMS Stocks)
FINRA Provides Guidance on Customer Communications Related to Departing Registered Representatives
New Rate for Fees Paid Under Section 31 of the Exchange Act
September 2005
In a continuing effort to assist member firms' compliance efforts, NASD is issuing this regular communication, "Improving Examination Results." This document has two sections: "Examination Priorities" and "Frequently Found Violations," both of which relate to the Department of Member Regulation's routine examinations of firms. While each
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FINRA rules require that member's communications with the public be accurate, fair and not misleading. An investor considering the series of a broker-dealer, including a "discount" broker, should be informed of all factors material to his use of such broker-dealer's services. There are many variables in the charges and services offered by broker-dealers and it isn't reasonable to expect that every variation be included in media advertising, given the expense of such advertising. Relevant factors not included in advertisements should be communicated to persons responding, however. Certain items should be included in the advertisement itself, when the advertisement would be misleading in the absence of their disclosure.
Current futures registrants may not offer or sell, or supervise persons who offer or sell, security futures until they have met certain proficiency requirements. Associates of registered commodity trading advisors and commodity pool operators must meet these proficiency requirements before engaging in security futures activities requiring registration as an associated person for those firms.
