FINRA reminds members of obligations related to pension income stream products. The Financial Industry Regulatory Authority published a regulatory notice that offers guidance on member firms’ responsibilities concerning the sale of pension income stream products. The notice reminds firms of the consequences of failing to determine whether a particular product is a security and encourages firms to adopt special procedures and training to assist representatives in understanding pension income stream product features and determining if these products meet their customers’ needs. (4/19/2016) FINRA press release.
MSRB Board holds quarterly meeting. At its quarterly meeting on April 13-14, 2016, the Board of Directors of the Municipal Securities Rulemaking Board discussed the public comments it received regarding proposed prevailing market price guidance and proposed changes to the procedures for the close-out of open inter-dealer transactions. The Board also agreed to issue a request for comments on a proposed approach to establishing continuing education requirements for municipal advisors. (4/18/2016) MSRB press release.
NFA published Notice to Members on approval process for risk-based initial margin models for covered swap entities. The National Futures Association notified members of additional details about its review process for CFTC Covered Swap Entities seeking approval of their margin models by September 1, 2016, including information regarding the NFA’s process for exploratory discussions, margin model submissions, review and assessment, and approval. (4/14/2016) NFA Notice I-16-13.
NYSE makes changes to registration and examination requirements for Floor Clerks. The New York Stock Exchange LLC announced that it has revised the registration and examination requirements for Floor Clerks by replacing the Trading Assistant registration with the Floor Clerk — Equities, eliminating the Series 25 exam, and renaming the Series 15 exam as the Series 19 exam. As of April 18, 2016, the Series 19 exam will be required of all individuals seeking qualification as Floor Clerks. (4/12/2016) NYSE Information Memo 16-05.
MSRB proposes changes to clarify exceptions to minimum denomination rule.The MSRB requested comments on proposed amendments to its minimum denomination rule that would add two additional trading scenarios that would be excluded from the rule’s prohibition on sales to customers below the minimum denomination. Comments are due on or before May 25, 2016. (4/7/2016) MSRB press release.
FINRA expands application of supplemental schedule for derivatives and other off-balance sheet items. FINRA published a Regulatory Notice that explains the recent rule amendments approved by the SEC that expand to the application of the Derivatives and Other Off-Balance Sheet Items Schedule to certain non-carrying/non-clearing firms that have significant amounts of off-balance sheet obligations. Newly filing firms must file their initial OBS disclosing off-balance sheet information as of June 30, 2016, on or before August 2, 2016. (4/5/2016) FINRA Regulatory Notice 16-11.