The Compliance Digest

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

FINRA Takes on Short Interest Reporting

On June 4, 2021, the Financial Industry Regulatory Authority (FINRA) published Regulatory Notice 21-19 (the Notice), which requests comment on certain significant proposed changes to short position and stock loan reporting. The proposed changes to Rule 4560 would increase the frequency of short-interest reports from twice a month to weekly or even daily. The change would require clearing firms to report synthetic short exposure - bets made against shares via derivatives - in firm and customer accounts. Read More

FINRA Fines Increase by 43% in 2020

Eversheds Sutherland recently completed its annual review of the disciplinary actions reported by the Financial Industry Regulatory Authority (FINRA) and found that in 2020 the amount of fines, restitution and cases increased compared with 2019, reversing the downward trend from the past few years - even in the midst of the COVID-19 pandemic. Read More

FINRA Releases 2021 Exam Priorities Letter

This year’s letter focused on broker-dealers’ compliance with Reg BI, Cybersecurity, Communications with the Public, Best Execution and much more! Read More

FINRA Conducts Targeted Exam of Fund Fee Waivers

The Financial Industry Regulatory Authority is conducting targeted exams of firms’ systems and procedures as it relates to providing mutual fund discounts or fee waivers to clients. Read More

FINRA-renewal

Your “Cheat Sheet” for 2021 FINRA Renewals

While it may be hard to believe, 2020 is already coming to a close, which means broker-dealers and investment advisors’ 2021 Renewal Programs are officially underway. Read More

FINRA-Registered Firms, Reps Continue to Decline

New research by FINRA shows that registered firms and representatives continue to decline and that far less representatives are joining the industry. Read More

FINRA Warns Firms of Copycat Website

FINRA is warning the public of an imposter website that uses a domain name nearly identical to that of FINRA's, but contains an extra "n". Read More

FINRA Addresses Exam Cheating at Board Meeting

A recent influx of cheating scandals at testing centers has prompted FINRA to create new procedures on how to identify, and eliminate, cheating in the future. Read More

FINRA Releases New Problem Codes & AI White Paper

In this article we recap FINRA’s new white paper on artificial intelligence and the addition of two new "problem codes" to report customer complaint information. Read More

Don’t Fall Victim to this FINRA Phishing Scam

FINRA is warning firms to beware of a recent phishing scheme that involves fraudulent emails that claim to be from FINRA officers. Read More