FINRA fines three firms for consolidated report failures. The Financial Industry Regulatory Authority announced it has sanctioned three firms for inadequate supervision of consolidated reports provided to customers and for other violations. During the course of routine examinations of the firms, FINRA found that numerous registered representatives of the firms prepared and disseminated consolidated reports to customers either without adequate review or any prior review by a principal, two of the firms did not have any written procedures specifically addressing the use and supervision of consolidated reports and the third failed to enforce its written procedures and did not provide proper training to its representatives regarding their use. The firms neither admitted nor denied the charges but consented to the entry of FINRA’s findings. (3/30/2015) FINRA press release.
FINRA seeks comment on its membership application rules. FINRA is conducting a retrospective review of the membership application rules to assess their effectiveness and efficiency. Comments should be submitted by May 14, 2015. (3/30/2015) FINRA Regulatory Notice 15-10.
Supervision for firms engaging in algorithmic trading. FINRA published guidance on effective supervision and control practices for member firms and market participants that use algorithmic strategies. (3/26/2015) FINRA Regulatory Notice 15-9.
FINRA exam fees. Effective April 1, 2015, FINRA imposed increased qualification examination fees. (3/25/2015) FINRA Regulatory Notice 15-8.
NFA updates Forex Guide. An updated “Forex Transactions: A Regulatory Guide” has been published by the National Futures Association. (3/24/2014) Guide.
Payments to unregistered persons. The Financial Industry Regulatory Authority’s proposed rules relating to payments to unregistered persons were approved by the SEC. As part of the proposal, FINRA also amended FINRA Rule 8311 (Effect of a Suspension, Revocation, Cancellation, or Bar). The new rules and amendments are effective August 24, 2015. (3/20/2015) FINRA Regulatory Notice 15-07.
FINRA proposes registration for algorithmic trading developers. FINRA published for comment a proposal that would require those associated persons of a FINRA member broker-dealer who are primarily responsible for the design, development or significant modification of algorithmic trading strategies, or who are responsible for supervising or directing such activities, to register with FINRA. Comments should be submitted by May 18, 2015. (3/19/2015) FINRA Regulatory Notice 15-06.
Anti-money laundering advisory. The NFA notified members that the US Financial Crimes Enforcement Network has issued an advisory concerning updates to the list of jurisdictions with strategic anti-money laundering deficiencies. (3/18/2015) NFA Notice I-15-12.