The Financial Industry Regulatory Authority has issued additional guidance regarding Rule 4530 reporting requirements in Regulatory Notice 11-32 (Notice) to assist member firms in their implementation of the Rule. Rule 4530 requires member firms to: (1) report to FINRA certain specified events and quarterly statistical and summary information regarding written customer complaints; and (2) file with FINRA copies of certain criminal actions, civil complaints and arbitration claims. For example, Rule 4530.01 requires a member firm to report, among other things, violations that have widespread or potential widespread impact to the “markets,” which refers to any organized market relating to any securities, insurance, commodities, financial or investment product. In addition, under Rule 4530.07, where a member firm receives or becomes aware of a customer complaint under Rules 4530(a)(1)(B) or 4530(d) involving a former associated person and the underlying conduct occurred while the individual was with the firm, the firm is expected to report the customer complaint.
Click here to read Regulatory Notice 11-32.