Header graphic for print
EB-5 Insights Where Government Policies and Business Realities Converge

Tag Archives: FINRA

Posted in Investment, Securities Law

On Thursday, July 27, regulators and industry professionals gathered in Washington, D.C. to discuss the current regulatory environment, cybersecurity, and other hot topics at the SEC and FINRA’s 2017 National Compliance Outreach Program for Broker-Dealers. The panelists, including SEC Commissioner Michael Piwowar, FINRA President and CEO Robert Cook, and Susan Axelrod, the Executive Vice President of… Continue Reading

Posted in Department of Homeland Security, EB-5 Investment, EB-5 Program, Immigration, USCIS

Due to the complex intersection of real estate, corporate, securities and immigration law (among others), an investment in a company under the EB-5 Program can be a complicated affair. One of the reasons an EB-5 investment is complicated has to do with U.S. governmental regulatory bodies with potential oversight over an EB-5 investment. The following… Continue Reading

Posted in EB-5 Investment, Securities Law

Nearly all U.S. broker-dealers are members of the Financial Industry Regulatory Authority (FINRA).  FINRA regulates, and provides oversight and guidance for its member firms.  When a broker-dealer becomes a FINRA member, they enter into a membership agreement which, among other things, specifies which financial products and services the broker-dealer is permitted to offer to its… Continue Reading

Posted in EB-5 Program

Earlier this month, the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) each published their 2016 exam priorities letters. Each agency publishes an exam priority letter annually in which they identify topics of examination focus for the coming year, recurring challenges faced by firms, and perceived areas of heightened risk to… Continue Reading

Posted in EB-5 Program

Yesterday, new FINRA Rule 2040 became effective.  The rule was approved by the SEC earlier this year.  Rule 2040(c) requires a broker-dealer who sells EB-5 securities disclose to investors the amount of fees paid to foreign finders.  In addition, a broker-dealer must receive written acknowledgement from an investor which shows that the investor is aware… Continue Reading

Posted in Securities Law

After a nationwide conference call of industry participants sponsored by agencies of the U.S. government and several years of cautionary discussions, through its recent actions, the agency that regulates securities sales in the United States, the Securities and Exchange Commission (SEC), and its self-regulatory arm, the Financial Industry Regulatory Authority (FINRA), have made compliance with… Continue Reading

Posted in Securities Law

Written by Terry R. Weiss and Matthew S. Johns In the wake of recent cybersecurity breaches, the SEC and FINRA simultaneously issued reports this week to the securities industry summarizing cybersecurity examination findings and to investors recommending certain precautions to safeguard online investment information. In its Risk Alert – Cybersecurity Examination Sweep Summary, the SEC… Continue Reading

Posted in Securities Law

Written by Richard M. Cutshall, Steven M. Felsenstein, and Carl A. Fornaris On Dec. 30, 2014, the SEC approved a proposed rule change pursuant to which FINRA is adopting a revised version of NASD Rule 3010(e) concerning background investigations of proposed registered representatives and adding a new obligation for member firms’ written supervisory procedures to require… Continue Reading

Posted in EB-5 Investment, Securities Law

The Financial Industry Regulatory Authority, Inc. (FINRA) regulates member brokerage firms and exchange markets in the United States. FINRA is a not-for-profit non-governmental organization that acts as a self-regulatory organization (SRO). SROs were created by the Securities Exchange Act of 1934 to enforce certain industry standards and requirements related to securities trading and brokerage. FINRA… Continue Reading

Posted in EB-5 Investment, General

In greater frequency, broker-dealers are participating in EB-5 financings.  These broker-dealers engage foreign finders and foreign affiliates to locate suitable investors.  Engaging foreign finders and foreign affiliates can pose compliance risks which may elevate a firm’s AML risk level and create suitability concerns for the broker-dealer. In recent literature, FINRA has reminded firms that the… Continue Reading

Posted in Securities Law

The Greenberg Traurig Securities Litigation Practice recently published an alert entitled “FINRA Welcomes in the New Year with its 2014 Priorities Letter for Broker-Dealers,” authored by Andy Clark and Terry Weiss. The alert outlines the recently released Regulatory and Examination Priorities Letter from FINRA, which reveals its intended areas of exam focus for 2014 and… Continue Reading