The Compliance Digest

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


FINRA Elects Vanguard’s John Brennan as Chairman

In a unanimous decision, the Financial Industry Regulatory Authority (FINRA) Board of Governors has elected John J. “Jack” Brennan, Vanguard Group Chairman Emeritus and Senior Advisor, as its new chairman. Mr. Brennan will become chairman on August 15, 2016, around the same time Robert Cook will take over as the Chief Executive Officer (CEO) of FINRA. Read More


Employee Caught Cheating on Continuing Education

According to FINRA’s July FINRA Disciplinary Actions Notice, a representative from Minneapolis, Minnesota was fined $5,000 and suspended from association with any FINRA member in any capacity for 20 business days due to the entry of findings that he did not complete the necessary continuing education coursework, yet he received notice that the requirements had been satisfied. Read More


CCO Fined for Incorrectly Labeling OBA

A CCO from Farmington Hills, Michigan was fined $10,000 and suspended from association with any FINRA member in any principal capacity for one month due to the entry of findings that he approved a firm representative’s participation in a private offering as an outside business activity, rather than as a private securities transaction, which was contrary not only to NASD and FINRA rules, but also to the firm’s WSPs.

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Five Must-Hear TED Talks for Compliance Professionals

While many of these talks are not directly tied to compliance, they share knowledge on a widespread range of relatable topics, including why people lie/cheat, password security and effective communication best practices. So relax, tune in and add an extra shot of continuing education to your workday! Read More


Missing Text Messages Fall on CCO’s Shoulders

A Miami-based firm and its chief compliance officer have been censured and fined $10,000 respectively due to the entry of findings that they failed to preserve and maintain all business-related electronic communications. Read More


Representative Suspended for Forging CCO’s Signature

According to this month’s FINRA disciplinary actions notice, a registered representative from Dix Hills, New York submitted an AWC in which he was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in any capacity for one year due to the entry of the findings that he falsified an approval signature on an outside business activity form. Read More


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