FINRA offers new guidance on research rules. The Financial Industry Regulatory Authority published updated responses to frequently asked questions regarding rules applicable to research analysts to include new guidance concerning registration, separation and disclosure requirements as well as information about the exemption for institutional debt research and applicability of rules governing trading ahead of research reports. (3/4/2016) FINRA research rules FAQs.
FINRA seeks comments on shortened settlement cycle for securities in the US secondary market. FINRA published proposed rule amendments that would shorten the settlement cycle from trade date plus three business days (T+3) to trade date plus two business days (T+2) for securities transactions in equities, unit investment trusts, and corporate and municipal bonds. Comments are due on or before April 4, 2016. (3/4/2016) FINRA Regulatory Notice 16-09.
MSRB publishes municipal securities data Fact Book. The Municipal Securities Rulemaking Board released its annual Fact Book of municipal securities data, which includes comprehensive and historical statistics on municipal market trading patterns, information on continuing and primary market disclosure, and interest rate resets for municipal variable rate securities. (3/3/2016) MSRB press release.
Senate subcommittee questions FINRA’s effectiveness at deterring misconduct during Ketchum testimony. During testimony before the Senate Subcommittee on Securities, Insurance and Investment on equity market structure, FINRA Chair Richard G. Ketchum withstood questions by Senator Elizabeth Warren regarding whether FINRA’s enforcement efforts have prevented misconduct in the industry, citing high reentry rates for brokers fired for misconduct and FINRA’s failure to collect arbitration awards, according to a report inInvestment News. (3/3/2016)
NFA adds cybersecurity section to Self-Examination Questionnaire. The National Futures Association has implemented a new section to address cybersecurity in the Self-Examination Questionnaire in an effort to assist members in implementing required written policies and procedures under the Cybersecurity Interpretive Notice, which became effective on March 1, 2016. (2/29/2016) NFA Notice 16-I-10.
NYSE publishes FAQs on revised Account Type Indicators. The New York Stock Exchange LLC issued responses to frequently asked questions regarding revisions to the list of Account Type Indicators, which provides a comprehensive source of definitions of Account Type Indicators for reporting requirements. Firms must comply with the revised list by August 1, 2016. (2/29/2016) NYSE Information Memo 16-2.
FINRA advances proposal to disclose mark-ups for transactions in fixed-income securities. FINRA announced that it will seek SEC approval for a proposal that would require member firms to disclose the mark-up or mark-down on retail customer confirmations for most transactions in corporate and agency debt securities. (2/26/2016) FINRA press release.
MSRB releases compliance advisory for brokers, dealers and municipal securities dealers. The MSRB published a Compliance Advisory for Brokers, Dealers and Municipal Securities Dealers, which outlines the key compliance risks for brokers, dealers and municipal securities dealers and provides guidance for dealers in assessing the adequacy of their compliance programs. (2/24/2016)MSRB press release.