FINRA Audits: What to Expect and How to Prepare

FINRA Audits: What to Expect and How to Prepare

Did you know that FINRA conducts between 1,500 and 2,000 audits a year? The Financial Industry Regulatory Authority (“FINRA”) delivers audits and regulation services to the financial industry. As a Self-Regulatory Organization (“SRO”), FINRA works closely with the Securities and Exchange Commission and enforces securities regulations. When your firm is due for an exam, FINRA assigns a Regulatory Coordinator who…

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FINRA Seeks Comments on Proposed Rule Requiring Delivery of Educational Communications to Customers of a Transferring Representative

On May 27, 2015, FINRA released Regulatory Notice 15-19 (“RN 15-19”) seeking comment on a proposed rule which would require recruiting firms to provide educational communications to retail customers who intend to transfer their assets to a registered representative’s recruiting firm. The purpose of the educational communications would be to inform customers of potential implications of transferring assets to the…

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FINRA Fines LPL Financial LLC $950,000 for Supervisory Failures

LPL Financial LLC was recently fined $950,000 for its failure to properly supervise the way its brokers sold alternative investments (such as hedge funds or non-traded real estate investment trusts). FINRA alleged that between January 1, 2008 and July 1, 2012, LPL failed to train their brokers to apply suitability guidelines and used inaccurate and outdated information to review whether an…

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