FINRA recently issued Notice to Members 17-42, which proposes sweeping changes to the process by which a securities broker may seek to expunge reference to a customer complaint from
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SEC and FINRA Continue to Root Out Bad Brokers
By William Mack & Dale Rose Goldstein on
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…
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Regulatory Bodies with Oversight of an EB-5 Investment
By Dillon Colucci on
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…
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Not Every Broker-Dealer is an EB-5 Broker-Dealer
By William Mack on
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…
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SEC and FINRA Name EB-5 as a Priority in 2016
By William Mack on
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…
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New FINRA Rule 2040 Becomes Effective
By William Mack on
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 …
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U.S. Securities Regulators Take Notice of EB-5
By William Mack on
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…
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SEC, FINRA Issue Reports on Cybersecurity
By Greenberg Traurig on
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 describes the results from examinations of more than 100 broker-dealers and investment advisors, the relative split between the two being unspecified. Nevertheless, the findings reveal that the vast majority of broker-dealers and investment advisors have made cybersecurity a priority and implemented appropriate cybersecurity policies and programs. The findings also suggest that broker-dealers have more thorough cybersecurity policies and programs in place than investment advisors.Continue Reading SEC, FINRA Issue Reports on Cybersecurity
New Background Check Obligations on the Horizon for Securities Broker-Dealers
By Greenberg Traurig on
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…
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What is FINRA?
By William Mack on
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 is subject to the oversight of the Securities and Exchange Commission (SEC).
FINRA licenses individuals and admits firms to the industry, writes rules to govern their behavior, examines them for regulatory compliance, and disciplines registered representatives and member firms that fail to comply with federal securities laws and FINRA’s rules and regulations. FINRA maintains the Central Registration Depository, a database of all registered individuals and firms. In addition, FINRA provides education and qualification examinations for securities industry professionals.Continue Reading What is FINRA?