MSRB provides guidance on compliance programs. The Municipal Securities Rulemaking Board published its Compliance Advisory for Brokers, Dealers and Municipal Securities Dealers, which offers a resource to brokers, dealers and municipal securities dealers for assessing the adequacy of their compliance programs. (9/25/2017) MSRB Compliance Advisory.
IBs must submit additional financial statement information to NFA. The National Futures Association has added new questions to its filing systems to streamline its review of financial statements filed by independent introducing brokers. (9/20/2017) NFA Notice to Members I-17-18.
NFA issues Notice on upcoming Board and Nominating Committee elections. The NFA published a list of the Board and Nominating Committee members whose terms will expire at the Board of Directors' regular annual meeting on February 15, 2018. Members may nominate eligible candidates by submitting the appropriate form on or before October 11, 2017. (9/20/2017) NFA Notice to Members I-17-17.
NFA notifies members of FinCEN’s updates to AML/CFT-deficient jurisdictions list. The NFA recommended that futures commission merchants and IBs revise their anti-money laundering programs to reflect FinCEN’s updated list of jurisdictions with strategic AML/CFT deficiencies. (9/19/2017) NFA Notice to Members I-17-16.
FINRA publishes guidance on margin requirements for covered agency transactions. The Financial Industry Regulatory Authority published a set of frequently asked questions that provides information regarding amendments to FINRA Rule 4210 that establish margin requirements for covered agency transactions. A second set of FAQs answers questions about the SEC’s net capital rule and customer protection rule in connection with the amendments to Rule 4210 with respect to covered agency transactions. (9/18/2017)
SEC begins review of OCC’s capital plan. As part of a court-ordered review of the Options Clearing Corporation’s plan for raising additional capital to support its function as a systemically important financial market utility, the SEC set a deadline of October 14, 2017, for the OCC to file additional statements regarding the plan. Response statements are due on or before November 13, 2017. The SEC also declined to stay the dividend payments to be made to the shareholder exchanges under the OCC’s plan during the SEC’s review. (9/14/2017) SEC Release No. 34- 81629.
MSRB reviews rules on primary offering practices. The MSRB published a concept proposal that seeks input on the benefits and burdens, including the costs and possible alternatives, of possible amendments to MSRB existing rules related to dealers’ primary offering practices. Comments are due on or before November 13, 2017. (9/14/2017) MSRB press release.
MSRB publishes Regulatory Notice on selective disclosure. The MSRB cautioned municipal securities issuers in a Regulatory Notice that selective disclosure, which occurs when issuers provide access to nonpublic information to certain classes of investors, creates an information imbalance and may expose them to federal fraud liability and insider trading charges. (9/13/2017) MSRB press release.