Advisers

FYI: FINRA Launches 529 Plan Share Class Initiative

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FYI: Perhaps taking a page from the SEC’s playbook, FINRA has launched its first-ever self-reporting initiative for member BDs. Under the initiative, BDs are encouraged to review their supervisory systems and procedures governing 529 plan share-class recommendations and self-report to FINRA any supervisory violations found, along with a plan to remediate harmed customers. In response, according to FINRA’s news release, FINRA’s Department of Enforcement will recommend that FINRA accept a settlement that includes restitution for the impact on affected customers and a censure, but no fine. Although FINRA’s initiative is only aimed at share class recommendations made for customers’ 529 […]

Advisers

FYI: FINRA Issues 2019 Examinations Priorities

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FYI: FINRA has issued its 2019 Annual Risk Monitoring and Examination Priorities Letter, outlining areas of emphasis for FINRA’s risk monitoring and examination program for broker-dealers in the coming year. Among the most interesting areas identified were: NEW AREAS OF FOCUS • Online distribution platforms (especially firms/platforms involved in the online distribution of privately placed securities). • Regulatory technology (aiming to understand how firms are using RegTech tools to address risks, challenges or regulatory concerns in areas such as supervision and governance, third-party vendor management, safeguarding customer data and cybersecurity). • Senior investors (specifically looking at heightened supervision imposed by […]