The Compliance Digest

Get expert compliance tips and up-to-date regulatory news.


SEC Reports Record-Breaking Enforcement Actions

On October 12, 2016 the SEC announced its enforcement results for the 2016 fiscal year, which touted a recording breaking year. Not only did the SEC increase the number of enforcement actions this past year but it also obtained judgments totaling more than $4 billion in disgorgement and penalties. Read More


FINRA Proposes Rule to Prevent Senior Abuse

To address the financial exploitation of seniors, FINRA has recently submitted a proposal to the SEC that would require firms to make reasonable efforts to obtain the name of and contact information for a trusted contact person for a customer’s account. Read More


FINRA Sanctions Firm over Private Placements

In FINRA’s October disciplinary action notice, a firm was fined $40,000 due to the entry of findings that its WSPs failed to address many elements of the firm’s due-diligence process for private placements. Read More

Focus on mutual fund investing on the newspaper

CCO Fined 10K for Failed Supervisory Controls

A CCO from Longboat Key, Florida was censured and fined $10,000 due to the entry of findings that as his member firm’s CCO and principal responsible for its supervisory control system, he failed to establish, maintain and prepare a report evidencing a supervisory control system with respect to mutual fund switching. Read More


Firm Fined for Failing to Monitor Continuing Education

A firm from Greensboro, North Carolina submitted an AWC in which the firm was censured and fined $20,000 due to the entry of findings that it failed to establish, maintain and enforce an adequate supervisory system and WSPs to monitor its registered persons’ Regulatory Element Continuing Education (CE) status. Read More


Tips to Stay on Track with 75 Days Left in 2016

As difficult as it is to believe, there’s only 75 working business days left in the year. For your compliance department, that means your firm's training needs to be completed, deadlines need to be met and boatloads of extra work needs to be accounted for before the bustle of the busy holiday season sets in. Read More


FINRA Bars Representative for Fraudulent Trading

A registered representative from Philadelphia, Pennsylvania was barred from association with any FINRA member in any capacity due to the entry of findings that he engaged in fraudulent trading. Read More


Representative Fined $50K for Editing Client Notes

A registered representative from Eden Prairie, Minnesota was fined $50,000 and suspended from association with any FINRA member in any capacity for one year based on findings that he altered computer notes of customer contacts after the customer complained about the suitability of a recommendation. Read More

gifts and entertainment

The Economic Impact of FINRA’s “Gift Rule” Change

Earlier this month, FINRA issued Regulatory Notice 16-29, which solicits feedback regarding proposed changes to FINRA’s gifts, gratuities and non-cash compensation rules. Read More


SEC Penalizes Company for Whistleblower Violation

According to the SEC’s complaint, BlueLinx added the monetary recovery prohibition to all of its severance agreements in mid-2013, nearly two years after the SEC’s adoption of Rule 21F-17, which strictly prohibits any action to impede someone from communicating with the SEC about possible securities law violations. Read More