The Compliance Digest

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


FINRA Targets Mutual Fund Sales Charge Waivers

In this month’s FINRA disciplinary actions notice, the self-regulator censured five firms while ordering them to provide a remediation plan for eligible customers, who qualified for, but did not receive, their applicable mutual fund sales charge waivers. Read More


Get to Know the Next FINRA CEO

FINRA named Robert W. Cook, an attorney and former SEC director, as a replacement for the regulator's retiring CEO Richard Ketchum. Mr. Cook will take over responsibilities in the second half of 2016. Read More


Compliance Questionnaires: Spotlight on Smart Data

While our annual compliance questionnaires have always offered the ability to create custom surveys, the new platform features the added option of utilizing pre-built standard forms as a way to aggregate tangible data year-after-year. Read More


Faking Client Signatures Ends Badly for Brokers

Signing a form for a client might seem like a harmless way to expedite paperwork and save the client from jumping through a few extra hoops but recent FINRA disciplinary actions show how much forging a signature, even with the best of intentions, can cost a broker. Read More


SEC Approves FINRA Educational Communication Rule

The SEC recently approved FINRA’s new Rule 2273 (Educational Communication Related to Recruitment Practices and Account Transfers), which requires delivery of an educational communication prepared by FINRA to customers of a transferring representative. Read More


Disclosure Tracking: Spotlight on Flexible Hierarchy

The system offers configurable business rules that can be tailored using a flexible, easy-to-administer approval routing system based on the corporate hierarchy of your firm. Read More


FINRA Finds Firm’s Supervision of OBAs Inadequate

A firm from Kirkwood, Missouri was censured and fined $20,000 due to the entry of findings that the firm’s supervision of its registered representatives’ outside business activities was inadequate. A lower fine was imposed after considering, among other things, the firm’s revenue and financial resources. Read More


Ketchum’s Top 10 Quotes from the FINRA Conference

Compliance isn’t always the most exciting topic at the water coolers, but when you get more than 1,000 industry professionals in a room talking about regulation, things start to get interesting. If you didn’t get the opportunity to join us at the FINRA conference this year, don’t worry, we have Richard Ketchum’s top 10 quotes here. Read More


Senior Helpline Returns $1.3 Million in First Year

Since FINRA debuted its Securities Helpline for Seniors a short year ago, the self-regulator has claimed to have helped return more than $1.3 million in voluntary reimbursements to elderly Americans.

To date, the helpline's staff has answered over 4,200 calls, referred more than 200 cases to state, federal and foreign regulators (in instances where it lacked jurisdiction), and made more than 70 referrals to Adult Protective Services in 15 states under mandatory reporting laws. Read More


Firm Fined $875K for Insufficient Technology

A firm from Los Angeles, California was censured and fined $875,000 due to the entry of findings that its supervisory systems and procedures and risk management controls were not reasonably designed to supervise and manage the risks of its market access (MA) business involving thousands of foreign-based traders, and therefore, could not reasonably monitor, detect and prevent potentially manipulative activity. Read More

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