FINRA sanctions Avenir Financial, CEO and registered representative for misconduct in self-offerings. The Financial Industry Regulatory Authority announced that a FINRA hearing panel fined Avenir Financial Group US$229,000, and suspended it for two years from engaging in any self-offerings of securities, for misconduct including the fraudulent sales of equity interests in the firm and promissory notes. The panel also found that the firm failed to provide to customers written disclosures regarding compensation from the sales and the use of proceeds in connection with the equity offerings, and inadequately supervised the firm’s capital raising. In addition to the sanctions against Avenir, the panel barred its former CEO from the securities industry for fraud, suspended a registered representative for two years for fraud, and ordered the representative to disgorge his US$25,000 commission. Avenir, the CEO, and the registered representative were also ordered to offer rescission to defrauded customers. FINRA press release.
FINRA announces election and appointment of new governors to FINRA Board.FINRA announced the election of a Small Firm Governor and the appointment of two new public governors to its Board of Governors at its 2016 Annual Meeting. (9/19/2016) FINRA press release.
MSRB offers progress report on completion of Dodd-Frank mandated regulatory framework for municipal advisors. The Municipal Securities Rulemaking Board provided an overview of its work on completing a regulatory framework for municipal advisors under the Dodd-Frank Wall Street Reform and Consumer Protection Act in a letter to members of Congress. (9/19/2016) MSRB press release.
MSRB will develop new academic data product for municipal market research.The MSRB announced that it has received approval from the SEC to develop an enhanced historical data product to provide institutions of higher education with post-trade municipal securities transaction data. The new product will include anonymous dealer identifiers to assist researchers in identifying transactions executed by specific parties while protecting dealers’ actual identities. (9/14/2016)MSRB press release.
NFA notifies members of updated list of AML/CFT deficient jurisdictions. The National Futures Association advised members to review and revise their anti-money laundering programs to comply with the most current information on jurisdictions with AML/CFT deficiencies identified by the Financial Action Task Force in its updated list of jurisdictions. (9/14/2016) NFA Notice I-16-19.
FINRA targets Early Rollovers in Unit Investment Trusts. FINRA released a targeted exam letter that requests information regarding firms’ Unit Investment Trust rollovers, including information about registered representatives who generated the highest Early Rollover revenue and the highest number of Early Rollovers. (9/13/2016) FINRA targeted exam letter.
FINRA solicits candidates for upcoming election for Small Firm Advisory Board and District Committees. FINRA notified members that eligible candidates who want to be included on the ballots for the upcoming elections for its Small Firm Advisory Board and for vacant positions on FINRA District Committees must submit candidate profiles and nomination forms to the Corporate Secretary of FINRA on or before October 7, 2016. (9/7/2016)
NYSE informs members of proposed listing of Dell Technologies tracking stock. The New York Stock Exchange LLC published an Information Memo regarding the proposed listing on NYSE of the Class V Common Stock of Dell Technologies Inc., which will be issued in connection with a merger agreement between Dell and EMC Corporation. The Memo reminded members of their obligations to determine the suitability of investing in these “tracking stocks” for their customers. (9/6/2016) NYSE Information Memo 16-12.