The SEC and FINRA have both been active over the past few months issuing new final rules and interpretive guidance on recent rule changes. For you and your firm, now is the time to update your WSP, Compliance Manual, or other stand-alone policies. For example, the following recent regulatory announcements will affect your firm’s procedures:
- New SEC Rule 15b1-6 for Broker-Dealers
- New FINRA Rule 5123
- New FINRA Guidance on Rule 2111
- Revised FINRA Rule 2210
All of the new or revised rules noted above would affect your brokerage firm’s policies. Rule 5123 is product specific (private placements) so it will only affect firms in that line of business, but the others are more general in nature, and will affect all brokerages transacting business for customer accounts.
FrontLine Compliance suggests that all firms review their policies and procedures in the first quarter of each year to account for rule changes that impact their business. The first step to ensuring an effective compliance program is to have current written policies and procedures.
View information on the new rules mentioned above: