News – Compliance and Regulatory Alerts

Compliance and Regulatory Alerts  |  09-14-21

FINRA Rules Addressing Brokers with Significant History of Misconduct Go Into Effect

New FINRA rules for protecting investors from brokers with a significant history of misconduct went into effect on September 1, 2021. The new rules, adopted on March 10, 2021, broaden authority to discipline associated persons, impose stricter supervision on firms, and mandate greater disclosure in various proceedings.


Compliance and Regulatory Alerts  |  08-17-21

Regulatory Alert: FINRA Exam Letter Targets Options Trading

On August 10, 2021, FINRA issued a targeted examination letter alerting firms that the regulator was conducting a review of all activities related to options accounts. In the new examination letter, FINRA requests information on account supervision, communications, and diligence from January 1, 2021, through August 10, 2021 (the date of the letter). Though the due date for the information has not yet been published, firms should begin working to formulate their responses immediately.


Compliance and Regulatory Alerts  |  07-27-21

SEC Charges 27 Financial Firms for Form CRS Filing and Delivery Failures

The Securities and Exchange Commission announced in a statement yeterday that “21 investment advisers and 6 broker-dealers have agreed to settle charges that they failed to timely file and deliver their client or customer relationship summaries – known as Form CRS – to their retail investors."


Bates Research, Compliance and Regulatory Alerts  |  06-30-21

FinCEN Issues First National AML/CFT Priorities

The Financial Crimes Enforcement Network (FinCEN) today issued the first government-wide priorities for anti-money laundering and countering the financing of terrorism (AML/CFT) policy.


Bates Research, Compliance and Regulatory Alerts  |  06-29-21

SEC Appoints New Jersey Attorney General Gurbir S. Grewal as Director of Enforcement

The Securities and Exchange Commission today announced that Gurbir S. Grewal has been appointed Director of the Division of Enforcement, effective July 26, 2021.


Compliance and Regulatory Alerts  |  04-21-21

With Increase in Options Trading, FINRA Issues Alert on Options Account Approval, Supervision and Margin Requirements

On April 9, 2021, FINRA issued guidance reminding members of their obligations on customer options accounts. The new alert flows from a reported increase in the opening of self-directed brokerage accounts and a broader risk of whether broker dealers and investment advisers are collecting information and performing adequate due diligence to ensure that options trading is appropriate for their customers. Additionally FINRA highlights compliance obligations on supervision, anti-money laundering and margin for customers seeking to trade options. In this Alert, Bates takes a look at the recently published guidance and what you need to know to stay in compliance.


Compliance and Regulatory Alerts  |  04-05-21

Update on New SEC Marketing Rule: It’s All or Nothing

The SEC’s new marketing and advertising rule will impose considerable oversight, recordkeeping and disclosure requirements affecting “100 percent” of investment advisers when it goes into effect May 4, 2021. The SEC Division of Investment Management staff have made clear that until an adviser chooses to comply fully with the new rule, they must continue to comply with the previous advertising and cash solicitation rules and related staff positions on them. In this Alert, Bates Compliance takes a look at the recently published FAQ on the new marketing and advertising rule and what you need to know to successfully comply with it.


Bates Research, Compliance and Regulatory Alerts  |  03-03-21

SEC Division of Examinations Announces 2021 Examination Priorities

The SEC Division of Examinations announced its 2021 examination priorities today, focusing on climate-related risks, conflicts of interest for brokers (Regulation Best Interest) and investment advisers (fiduciary duty), and attendant risks relating to FinTech in its initiatives and examinations. Stay tuned for our annual commentary, coming soon.


Bates Research, Compliance and Regulatory Alerts  |  02-04-21

New Update from Bates Compliance: Broker-Dealer Branch Office Compliance White Paper

In May 2019, Bates Compliance published a review of the supervision, inspection and operational considerations for broker-dealer branch office compliance. Since then, FINRA has broadened its examination priorities, while the COVID-19 pandemic has heightened compliance risks. This updated white paper discusses the responsibilities placed on the supervisors of broker-dealer branches in light of FINRA's broadened priorities and recently updated guidance on remote supervision.


Bates Research, Compliance and Regulatory Alerts  |  02-02-21

FINRA Releases 2021 Report on FINRA’s Examination and Risk Monitoring Program

FINRA has announced the publication of the 2021 Report on FINRA's Examination and Risk Monitoring Program. The new Report combines and replaces two previously published annual reports, the Report on Examination Findings and Observations and the Risk Monitoring and Examination Program Priorities Letter.


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