FINRA offers guidance on new rules governing recruitment practices. The Financial Industry Regulatory Authority published a Regulatory Notice that provides an overview of new FINRA rules on firm recruitment practices and account transfers, which will become effective on November 11, 2016. Under the new rules, firms who recruit registered representatives must provide an educational communication to the representatives’ former customers explaining the potential implications of transferring their assets to the recruiting firm. (5/16/2016) FINRA Regulatory Notice 16-18.
NYSE issues guidance on disruptive trading activity. The New York Stock Exchange, LLC published an Information Memo that reminds members of their obligations to avoid engaging in trading or quoting activity that disrupts the trading of securities on NYSE Exchanges and offers guidance to members in identifying disruptive activity. NYSE Information Memo 16-06.
FINRA offers guidance for investors on securities-based crowdfunding. FINRA published an Investor Alert that provides investors with an overview of the new securities-based crowdfunding rules as well as advice for assessing whether crowdfunding investing is right for them. (5/13/2016) FINRA press release.
2016 GASB Accounting Support Fee. FINRA announced that it will collect a total of US$2,077,625 from member firms on a quarterly basis to fund the 2016 GASB Accounting Support Fee, which FINRA collects from member firms to support the annual budget for the Governmental Accounting Standards Board. (5/5/2016) FINRA Regulatory Notice 16-16.
FINRA reminds firms of their options positions reporting obligations. FINRA published a Regulatory Notice that reminds firms that they are required to report options positions to the Large Options Positions Reporting system. The Notice also summarizes FINRA’s previous guidance related to these reporting obligations. (5/5/2016) FINRA Regulatory Notice 16-17.
NFA offers additional guidance on margin model documentation submissions.The National Futures Association published a Notice to Members containing step-by-step instructions and other information that CFTC Covered Swap Entities will need in order to submit margin model documentation to the NFA for review. (5/4/2016) NFA Notice I-16-14.