Published on June 27, 2024, FINRA Regulatory Notice 24-09 provides key reminders for member firms using Generative AI (Gen AI) and Large Language Models (LLMs) in their operations. While these technologies offer significant potential to enhance services and efficiency, firms…

FINRA has informed member firms  that the Options Clearing Corporation has released the June 2024 Options Disclosure Document (ODD). The ODD provides investors with essential information about the features and potential risks of trading standardized options. The June 2024 Options…

Are you looking for updates on the Residential Supervisory Location (RSL) Designation? FINRA recently released an updated FAQ about RSLs. These FAQs offer a quick go-to guide for broker-dealers who want to use the RSL designation. The first day firms…

FINRA Adopts Amendments to Improve the Accessibility of Order Routing Disclosures for NMS Securities Background and Discussion Exchange Act Rule 606(a) was implemented by the U.S. Securities and Exchange Commission (SEC) to promote transparency in the securities industry. Under this…

New SEC Rules and Amendments Shorten the Standard Securities Transaction Settlement Cycle to T+1 The Securities and Exchange Commission (SEC) recently implemented new rules and amendments that aim to shorten the standard securities transaction settlement cycle to T+1. This means…

In accordance with FINRA Rule 3110.19, a private residence may be designated as a Residential Supervisory Location (RSL) under certain eligibility conditions. These conditions include, but are not limited to, the requirement that the associated person's direct supervisor must approve…

FINRA — the Financial Industry Regulatory Authority, Inc. — has proposed changes to FINRA Rule 2210, governing communications with the public. Currently, FINRA member broker-dealers cannot include performance projections or target returns in institutional communications or communications to qualified purchasers.…

The Financial Industry Regulatory Authority (FINRA) recently released its 2024 Annual Regulatory Oversight Report, offering valuable insights into the organization's regulatory activities and key areas of focus for member firms. This report is a must-read for anyone in the broker-dealer…

On December 22, 2023, FINRA issued a regulatory notice reminding member firms of net capital, recordkeeping, and financial reporting requirements in connection with revenue recognition practices.  FINRA monitored its member firms and noticed that some firms were not complying with…

In response to SEC amendments adopted on August 23, 2023, the Financial Industry Regulatory Authority (FINRA) has proposed a short-form membership application process. The SEC amendments made some changes, including removing the gross income exemption, which had previously allowed firms…