2019 NASAA Annual Conference Highlights Investment Advisor Exam and Enforcement Activity

2019 marked the 100th year of state regulation of the securities industry.  Although this milestone was the focus of the 2019 NASAA Annual Conference last week in Austin, Texas, NASAA also released two reports on the results of coordinated examinations of state registered investment advisors and enforcement activity. According to the 2019 Investment Advisor Coordinated… READ MORE

Compliance Procrastinators – With 2020 Compensation Planning Heating Up- Now is the Time to Make Sure Reg BI is Fully Understood

Reg BI has made some decisions very easy. The rule requires firms to “identify and eliminate sales contests, sales quotas, bonuses, and non-cash compensation that are based on the sale of specific securities or specific types of securities within a limited period of time.” With compensation planning for 2020 discussions typically heating up in the fall,… READ MORE

Broker-Dealer Consolidated Report Enforcement Actions

Are Your Internal Controls, Written Procedures and Supervisory Reviews Enough? If you have reviewed the enforcement actions filed by FINRA related to the use of consolidated reports by broker-dealers, you are probably wondering if you are doing enough to protect your firm.  Here is what you need to know to help make that determination. Consolidated… READ MORE

FINRA Seeks Feedback on Business Continuity Plans

FINRA is currently seeking feedback on its Business Continuity Rule, including if firms have activated their business continuity plans and whether the costs of creating, maintaining or updating such a plan outweigh the benefits.  Feedback is due April 26, 2019. What makes an effective Business Continuity Plan? An effective plan can create loyal customers by… READ MORE

NASAA & FINRA Reports Point to Regulatory Expectations for Heightened Supervision

FINRA’s 2019 Risk Monitoring and Examination Priorities Letter was released last week. While the letter’s second paragraph lists areas of focus which are detailed throughout the report, the third paragraph includes a brief statement about how FINRA will focus on risk related to associated persons with a “problematic regulatory history”.  Where there was not a… READ MORE

Regulatory Actions – ICOs and Digital Trading

Regulators in the digital asset space are focusing a significant amount of attention to Initial Coin Offerings (ICOs) and digital asset trading.  Their activities have included addressing the lack of transparency of exchanges that trade digital assets, jurisdictional issues, and the need to consider registration or qualifying for an exemption for ICOs and cryptocurrency-related investments…. READ MORE