Understanding FINRA’s New Suitability and Know Your Customer Rules
FINRA’s new Know Your Customer and Suitability rules give rise to certain additional obligations that will require broker-dealer firms to revisit their internal controls and educate their staff on the new requirements. The rules, which were initially announced in this … Read More
SEC Provides Relief from Registration for Certain Advisers
On January 18, 2012, the staff of the Investment Management Division of the SEC issued a No-Action Letter (the “ABA Letter”) providing relief from registration for certain advisers that are affiliated with a registered adviser, subject to certain conditions. Significantly, … Read More
Paving the Way to Allow General Advertising and Solicitation in Exempt Securities Offerings
As reported in this prior post, efforts to eliminate the prohibition on general advertising and solicitation in Rule 506 of Regulation D have recently gained momentum at the federal level. The states appear to be following suit by proposing new … Read More
Due Date Fast Approaching for Electronic Submission of Annual Audit Reports to SEC and FINRA
Pursuant to Rule 17a-5(d) under the Exchange Act, all SEC-registered broker-dealers must submit annual audit reports to the SEC and the firm’s designated examining authority (such as FINRA) no more than 60 days after its fiscal year-end. Accordingly, firms with … Read More
CFTC Rescinds Commonly Used Exemption from CPO Registration
On February 8, 2012, the Commodity Futures Trading Commission (“CFTC”) issued final regulations that repeal the exemption from registration as a commodity pool operator (“CPO”) set forth in CFTC Regulation 4.13(a)(4), which is widely used by operators of private funds … Read More
Form 13F Filing Deadline Approaching
Section 13(f) of the Securities Exchange Act of 1934 requires institutional investment managers with investment discretion over $100 million or more of certain equity securities to file quarterly reports disclosing their holdings using Form 13F. For purpose of Form 13F, … Read More
Massachusetts Issues Guidance Regarding Use of Social Media by Investment Advisers
Recognizing the rapid growth of the use of social media in the securities industry, the SEC recently released a Risk Alert on the use of social media by investment advisers highlighting concerns that may arise from the use of social … Read More