Category Archives: Regulatory

FINRA’s Engagement Initiative

March 30, 2017 Anna T. Pinedo Leave a comment

FINRA’s March 2017 announcement of its engagement initiative provides an opportunity for the industry to consider FINRA’s activities on a much broader level.

FINRA’s special notice reflects its previously announced plans to examine its rules and procedures based on its interaction with the industry. For example, in his cover letter to FINRA’s 2017 examination priorities letter, Robert Cook, FINRA’s President and CEO, discussed his “never ending” listening tour of the industry.

BICE on Ice? Status of the DOL Fiduciary Rule

March 9, 2017 Clifford E. Kirsch Leave a comment

With recent developments in all three branches of government bearing on the authority and timing of the new DOL final rule expanding the definition of fiduciary “investment advice” for purposes of ERISA, the already formidable challenges for plan sponsors and retirement product and service providers have been made more difficult.

FINRA Focus: What Happened With Restitution in 2016?

March 7, 2017 Clifford E. Kirsch Leave a comment

Evershed Sutherland’s annual analysis of FINRA’s disciplinary actions indicates that FINRA fined firms and individuals a record-setting $176 million in 2016.. In addition, it ordered $28 million in restitution in 2016.

But. . .

How did 2016 compare to previous years, including 2015’s record-breaking year?
What types of cases triggered orders of restitution from FINRA in 2016?
What should firms expect in 2017?

View the analysis here

Additional contributor to this post:

Brian L. Rubin, brianrubin@eversheds-sutherland.com

Regulatory

FINRA Rule 5110 — Should it be Modernized?

March 4, 2017 Benjamin T. Marzouk Leave a comment

On March 8, 2017, FINRA’s Board of Governors will meet to discuss certain proposed rulemaking considerations, including proposals to streamline and modernize FINRA Rule 5110 (Corporate Financing Rule – Underwriting Terms and Arrangements). FINRA Rule 5110 governs member firm participation in the public offering of securities, and imposes certain filing requirements and related compensation restrictions for members participating in a public securities offering. Upon approval from FINRA’s Board of Governors, any formal proposal will still need to be published for comment to FINRA member firms (typically through a “Regulatory Notice” filing) and also published for review and approval by the SEC.

Regulatory, Standard of Care, Compliance

DOLFR Delay Proposal

March 4, 2017 Benjamin T. Marzouk Leave a comment

A proposal seeking to delay the applicability date of Department of Labor’s fiduciary duty rule (“DOLFR”), which impacts the compensation received by broker-dealers and investment advisers for the distribution of covered retirement accounts, was published on Thursday, March 2, 2017. According to the federal register’s notice, the applicability date (which had been scheduled for April 10, 2017) was proposed to be delayed by 60-days to June 9, 2017. The proposal allows for a 15-day comment period from the March 2, 2017 publication date, which would end on March 17, 2017. The proposal also invited comment on a February 3, 2017 Presidential Memorandum to the Secretary of Labor, requesting broader review of DOLFR and its related exemptions.

For more on the DOLFR, including legal alerts and commentary, see www.dolfiduciaryrule.com.