NASAA Supports Proposal Requiring Use of BrokerCheck Links in Online Communications With Public

In a recent letter to FINRA, the North American Securities Administrators Association, Inc. (“NASAA”) wrote in support of a proposal requiring broker dealers to add links to BrokerCheck on firm communications available to retail investors.  The proposal, set forth in FINRA Regulatory Notice 14-19, calls for an amendment to FINRA Rule 2210 requiring firms to include readily apparent references and hyperlinks…

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The SEC Issues an Investor Alert Regarding Fraudulent Investment Newsletters

This month, the SEC issued an Investor Alert relating to fraudulent newsletters.  The SEC warned the investing public to be wary of fraudulent newsletters and advised investors to investigate newsletters by reading  them carefully in regards to compensation and to keep an eye out for red flags including: no disclosures, vague disclosures, and buried disclosures.   The SEC’s ongoing focus on…

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FINRA Approves Supervision Rule Change Requiring Enhanced Review of Applicant Backgrounds

The Financial Industry Regulatory Authority (“FINRA”) recently announced changes to its supervision rule which requires firms to conduct background checks on applicants for registration.  The background checks cover both first-time registrants as well as transfers, and are meant to ensure the accuracy and completeness of information contained in an individual’s Form U4.  Information contained in the U4 forms the basis…

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