Entries by Marianna Shafir Esq.

Regulatory Update: FINRA Sanctions for June 2017

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Firms, Individuals, and Compliance Officers fined for failure to retain and supervise all electronic communication CCO’s are in FINRA’s crosshairs A CCO was fined in June for failure to comply with FINRA Supervision Rules 3110 and 3130. The CCO failed to have an effective supervisory system in place to retain and review electronic communications. The CCO […]

Regulatory Update: FINRA Sanctions for May 2017

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Two firms penalized for failure to supervise Two firms were fined in May for failure to comply with FINRA Supervision Rule 3110. In both cases, the firms failed to review their representative’s electronic communications. The first firm was fined $32,500 for failure to establish and maintain a reasonable supervisory system for the review of electronic communications. […]

Top Tech Trends from the 2017 FINRA Annual Conference

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Last week, Smarsh attended FINRA’s premiere event in Washington D.C. The 2017 FINRA Annual Conference was jam-packed with FINRA and SEC regulators, financial titans from leading organizations, and exhibitors. Participants learned about the latest regulatory developments and gained practical guidance on today’s top compliance issues. The conference agenda included a focus on technology trends and […]

FINRA Releases More Guidance on Social Media, Text Messaging, and Other Mobile Communications

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Many financial services firms still struggle to understand and fully embrace social media and mobile communication rules. In light of the emerging technologies and communications, FINRA recently published Regulatory Notice 17–18: Social Media and Digital Communications, providing further guidance on the FINRA rules governing social media and text messaging communications for member firms. FINRA’s updated guidance […]

Regulatory Updates: More FINRA fines and suspensions for unauthorized text communications

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Sanctions for failure to archive text messages is a new FINRA enforcement action trend. In March, FINRA fined and suspended another broker. So far, the regulator has fined and suspended three brokers since the end of 2016 for using text messaging to communicate with clients. Text Message Fines and Suspensions FINRA issued a $5,000 fine and […]

FINRA Fines Hit Record High in 2016

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Related Webinar Smarsh recently hosted a webinar with Eversheds Sutherland LLP to discuss their results: FINRA’s Fines and Sanctions Hit Record High in 2016 In this webinar, you’ll find: The top regulatory enforcement issues from 2016 Emerging trends from FINRA and SEC actions, including recent “supersized” fines of $1 million or greater What the regulators will be focusing on in 2017 FINRA […]

Books and Records are Among SEC’s Top Five Compliance Violations

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The SEC’s Office of Compliance Inspections and Examinations (OCIE) has identified Books and Records as one of the top five compliance issues raised most often in deficiency letters to investment firms. OCIE observes advisors have failed to maintain all required records, kept inaccurate records, did not update records, and demonstrated inconsistencies in record keeping practices. For […]

Failure to Archive Text Messages Results in Regulatory Fines and Suspension

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Do your advisors use text messages to communicate with their clients? Most likely, the answer is yes. For SEC and FINRA regulated firms and advisors, it is imperative to understand that failure to comply with supervision and retention regulations can lead to disciplinary actions against firms and individual advisors. In 2016, FINRA suspended and fined an […]