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Guidance
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Disciplinary Actions
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Upcoming Deadlines and Effective Dates
• SEC Requests for Comment
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Education and Compliance Programs
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Tune in to the latest episode of the FINRA Unscripted podcast. In this episode, we take an abridged look at one of the sessions from FINRA’s Senior Investor Protection Conference and discuss the various trends, scams and schemes currently impacting investors. Listen to the podcast.
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FINRA’s Fixed Income Information Moves to New Platform
FINRA has launched a new Fixed Income Data platform that merges FINRA’s BondFacts page with fixed income information from the Market Data Center. The new platform serves as a one-stop resource for comprehensive, real-time access to fixed income security and trade information compiled from TRACE and other sources.
The Fixed Income Data site is now live, to provide an opportunity for users to become familiar with it. Specifically, any users who currently have a watchlist on the Market Data Center will need to create a new watchlist on the new platform. If you have any questions, please contact [email protected].
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Guidance
FINRA recently published a new compliance resources page consolidating its extensive resources to help firms manage and address risks and threats that could pose harm to their business, compliance programs and investors. These resources include risks FINRA has observed in recent regulatory programs, observations from recent targeted exams (sweeps) and tools to help address ongoing threats--including cybersecurity, fraud and AML issues.
The page features a new resource: Insider Threats – Effective Controls and Practices. The publication expands on prior FINRA cybersecurity guidance by providing a range of effective controls and practices to help member firms identify, prevent, detect and respond to insider threats.
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Disciplinary Actions
FINRA publishes disciplinary actions to remind registered representatives and firms of specific conduct that violates FINRA rules and may result in disciplinary action. FINRA recently published the April 2023 Monthly Disciplinary Actions.
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Upcoming Deadlines and Effective Dates
SEC Requests for Comment
On March 24, 2023, the SEC issued an order instituting proceedings to determine whether to approve or disapprove FINRA’s proposed rule change to add IntelligentCross ATS as a new entrant to the Alternative Display Facility. Comments are due April 20, 2023. Any rebuttals to comments filed with the SEC are due May 4, 2023. See the SEC Notice of Order.
On April 12, 2023, the SEC issued an order instituting proceedings to determine whether to approve or disapprove FINRA’s proposed rule change, as modified by Amendment No. 1, to amend the Codes of Arbitration Procedure (Codes) to make various clarifying and technical changes to the Codes. Comments are due May 9, 2023. Any rebuttals to comments filed with the SEC are due May 23, 2023. See the SEC Notice of Order.
The SEC requests comment on FINRA’s proposal to adopt Supplementary Material .19 (Residential Supervisory Location) under FINRA Rule 3110 (Supervision) that would align FINRA’s definition of an office of supervisory jurisdiction and the classification of a location that supervises activities at non-branch locations with the existing residential exclusions set forth in the branch office definition to treat a private residence at which an associated person engages in specified supervisory activities as a non-branch location, subject to safeguards and limitations. Comments are due April 27, 2023. See the Federal Register notice.
As a reminder, the SEC amended Rule 17a-4 on October 12, 2022, to modify the requirements regarding the maintenance and preservation of electronic records, the use of third-party recordkeeping services to hold records, and the prompt production of records (effective and compliance dates: January 3, 2023, and May 3, 2023, respectively). FINRA prepared a chart that summarizes the most significant changes. Additionally, the SEC has prepared responses to Frequently Asked Questions (FAQ).
As a result of the changes to the language of the Third-Party Access Undertaking, firms electing to continue using their current third-party access arrangements to comply with Rule 17a-4(f) must ensure that the third-party files new undertakings including the amended language. These new undertakings must be submitted to FINRA by May 3, 2023. Firms are alerted that if they elect to utilize an electronic recordkeeping system, the amendments require that they submit to FINRA either a Third-Party Access Undertaking or a Designated Executive Officer Undertaking.
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Education and Compliance Programs
FINRA's Annual Conference is close to capacity and the hotel room block is closing on April 24. Register soon to reserve your spot at our premier event and join us May 16-18 to connect and network with industry peers, engage in informal conversations with FINRA senior leaders and exchange diverse perspectives on the timeliest compliance and regulatory topics. View the agenda.
Week I of the 2023 FINRA Institute at Georgetown Certified Regulatory and Compliance Professional (CRCP)® Program is sold out. This popular program brings together world-renowned professors, expert faculty and fellow industry participants for two non-consecutive weeklong courses on the foundation, theory and practical application of securities laws and regulation. Reserve your spot now for Week II on November 12 – 17. Looking ahead? Registration is open for Week I in 2024.
Firm compliance personnel who are new to registration and licensing—or would like to become more familiar with navigating related systems—are invited to join FINRA virtually for an upcoming Registration Systems Foundation training. These training sessions are from noon to 5 p.m. ET on two consecutive days. See the Virtual Training Schedule & How to Register page for more information.
Register for all of FINRA’s upcoming events:
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