FINRA identifies best practices for digital investment advice services. The Financial Industry Regulatory Authority released a report that outlines the regulatory principles and best practices for digital advice services offered by financial services firms. The report suggests that firms using digital investment advice tools implement sound governance and supervision practices relating to several key areas and recommends training of employees regarding the assumptions and limitations of these tools. (3/15/2016) FINRA press release.
FINRA evaluates effectiveness of rules governing its Membership Application Program. FINRA released the findings of its review of its Membership Application Program rules, which require FINRA to evaluate potential and current member firms to ensure these firms have established financial, operational, supervisory, and compliance systems. (3/11/2016) FINRA press release.
NFA to review risk-based initial margin models under CFTC margin rules. The National Futures Association notified members that the NFA will be responsible for reviewing and approving risk-based initial margin models for uncleared swaps for CFTC Covered Swap Entities under the CFTC’s final margin rules, with the first compliance date occurring on September 1, 2016. (3/10/2016) NFA Notice I-16-11.
NYSE members must report certain MRVs to SEC. The New York Stock Exchange LLC reminded members of their obligation to report any Minor Rule Violations with fines exceeding US$2,500, or where the fine was disputed, to the SEC on Form BD and Form U-4. NYSE Information Memo No. 16-03.
FINRA publishes additional guidance on submission and feedback processes for market maker transaction data. FINRA published supplemental guidance that explains the procedures for file submission, syntax and semantic processing, linkage processing, and timeframes for submitting a cancel or correction for Market Maker Transaction Data. (3/8/2016) FINRA Market Maker Transaction Data Supplementary Guidance.