FINRA Requires Reporting of All Securities Law Violations
A new FINRA rule requires member firms to report any violations of securities laws within 30 days. New Rule 4530(b) requires a member firm to report to FINRA within 30 days “after the member has concluded or reasonably should have concluded that an associated person of the member or the member itself has violated any securities-, insurance-, commodities-, financial- or investment-related laws, rules, regulations or standards of conduct of any domestic or foreign regulatory body or self-regulatory organization.” A firm must report conduct “that has widespread or potential widespread impact to the member, its customers or the markets, or conduct that arises from a material failure of the member’s systems, policies or practices involving numerous customers, multiple errors or significant dollar amounts.” The new reporting commences on July 1.
OUR TAKE: This may be the most broadly worded reporting obligation in the securities industry. Expect the SEC to follow suit with advisers.
Posted by Todd Cipperman at 2/22/2011 6:29 AM 
Categories: Distribution and Broker-Dealers
Tags: reporting securities law violations
Categories: Distribution and Broker-Dealers
Tags: reporting securities law violations
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