Written by Jay Gould, Ildiko Duckor and Peter Chess On January 4, 2012, the Securities and Exchange Commission (SEC) released a National Examination Risk Alert addressing investment adviser use of social media. Investment advisers should have policies regarding the use of social media, and the SEC outlined specific factors that…
Written by Peter J. Chess On November 30, 2011, FINRA and the SEC’s Office of Compliance Inspections and Examinations (OCIE) released a National Exam Risk Alert on effective procedures and policies for broker-dealer branch inspections. This follows other recent guidance for broker-dealers regarding the Market Access Rule and reasonable investigations…
Written by Jay Gould On October 18, 2011, the SEC released a notice of FINRA’s filing of Proposed Rule 5123 (the “Proposed Rule”) which would require FINRA members and associated persons to: 1) provide to investors disclosure documents in connection with private placements prior to sale and 2) file with…
Written by Jay Gould, Ildiko Duckor and Michael Wu An investment adviser must ensure that its IARD account is adequately funded to cover payment of all applicable registration renewal fees and notice filing fees. Beginning November 14, 2011, Preliminary Renewal Statements (“PRS”), which list an adviser’s renewal fee amount, are…
Written by Michael Wu On December 15, 2010, FINRA Rule 3270 became effective. FINRA Rule 3270 requires each registered representative of a broker-dealer to provide it with prior written notice of an outside business activity. FINRA Rule 3270, which replaced NASD Rule 3030 and NYSE Rule 346, specifically identifies the…